Criss-Crossing Globalization : Uphill Flows of Skill-Intensive Goods and Foreign Direct Investment
This paper documents an unusual and
possibly significant phenomenon: the export of skills,
embodied in goods, services or capital from poorer to richer
countries. The authors first present a set of stylized
facts. Then, using a measure that combines the
sophistication of a country s exports with the average
income level of destination countries, they show that the
performance of a number of developing countries - notably
China, Mexico and South Africa - matches that of much more
advanced countries - such as Japan, Spain and the United
States. The authors create a new combined dataset on foreign
direct investment (covering greenfield investment as well as
mergers and acquisitions). The analysis shows that flows of
foreign direct investment to developed countries from
developing countries - like Brazil, India, Malaysia and
South Africa - as a share of their GDP, are as large as
flows from developed countries - like Japan, Korea and the
United States. The authors suggest that it is not just the
composition of exports but their destination that matters.
In both cross-sectional and panel regressions, with a range
of controls, a measure of uphill flows of sophisticated
goods is significantly associated with better growth
performance. These results suggest the need for a deeper
analysis of whether the benefits of development might derive
not from deifying comparative advantage but from defying it.
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Bibliographic Details
| Main Authors: |
Mattoo, Aaditya,
Subramanian, Arvind |
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| Language: | English |
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| Published: |
2009-09-01
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| Subjects: | ADVANCED COUNTRIES,
AFFILIATED ORGANIZATIONS,
APARTHEID,
BALANCE OF PAYMENTS,
BANK POLICY,
BENEFITS OF TRADE,
CAPITAL STOCK,
COMPARATIVE ADVANTAGE,
COMPETITIVENESS,
COUNTRY FIXED EFFECTS,
COUNTRY TO COUNTRIES,
DEVELOPED COUNTRIES,
DEVELOPING COUNTRIES,
DEVELOPING COUNTRY,
DEVELOPMENT ECONOMICS,
DISCLOSURE,
DISCLOSURE REQUIREMENTS,
DOMESTIC PRODUCERS,
ECONOMIC INTEGRATION,
ECONOMIC PERFORMANCE,
ECONOMIES OF SCALE,
EMERGING MARKET,
EMERGING MARKET COUNTRIES,
EMERGING MARKETS,
EMERGING MULTINATIONALS,
EQUILIBRIUM,
EXPORT BASKET,
EXPORT FLOWS,
EXPORT PRODUCTION,
EXPORTERS,
EXPORTS,
FINANCIAL FLOWS,
FIXED COSTS,
FLOWS OF CAPITAL,
FOREIGN CAPITAL,
FOREIGN DIRECT INVESTMENT,
FOREIGN FIRMS,
FOREIGN MARKETS,
FOREIGN PRODUCERS,
FOREIGN TRADE,
GDP,
GDP PER CAPITA,
GLOBALIZATION,
GROWTH THEORIES,
HUMAN CAPITAL,
IMPERFECT COMPETITION,
IMPORTS,
INCOME,
INCOME LEVEL,
INDUSTRIAL COUNTRIES,
INSTRUMENT,
INTERNATIONAL BANK,
INTERNATIONAL ECONOMICS,
INTERNATIONAL TRADE,
INVESTING,
INVESTMENT PROJECTS,
LOW INTEREST RATES,
MARKET STRUCTURE,
MERGERS,
MICRO DATA,
OFFSHORE FINANCIAL CENTERS,
PER CAPITA INCOME,
PER CAPITA INCOMES,
PRODUCT DIFFERENTIATION,
PRODUCTIVITY,
RETURNS,
RULE OF LAW,
SAVINGS,
STOCKS,
TECHNOLOGY TRANSFER,
TRADE DATA,
TRADE MODELS,
TRADING,
TRANSACTION,
TRUST FUND,
VIRTUOUS CYCLE,
WAGES,
WORLD INVESTMENT REPORT,
WORLD TRADE, |
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090910134156
https://hdl.handle.net/10986/4239
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