The Impact of Foreign MNEs on Export Sophistication of Host Countries: Evidence from China
نویسندگان
چکیده
In this paper we assess the impact of foreign MNEs on China’s rapidly rising export sophistication during 1998-2005. We use a measure of export sophistication newly developed in the literature, and distinguish MNEs between wholly foreign owned enterprises (WFOEs) and joint ventures (JVs), and between MNEs from OECD and from Hong Kong, Macao and Taiwan (HMT). We test several hypotheses based on MNE heterogeneity against a hypothesis based on the conventional trade theory. We find that China’s rising export sophistication is largely explained by the increasing presence of OECD-WFOEs, and also HMT-WFOEs after China’s WTO entry in 2001.
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