Impacts of Export-platform FDI on the production of upstream industries - do third country size, trade agreements and local content requirement matter? Evidence from the Vietnamese supporting industries

Thanh Tam Nguyen-Huu and Minh Nguyen-Khac

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2017, vol. 11, No 2017-22, 33 pages

Abstract: This paper investigates the impacts of Export-platform foreign direct investment on the production of upstream industries through backward linkages. First, in a three-country model, these impacts are explained through a competition effect and a demand effect. Otherwise, such production is also affected by third country size, local content requirement, and power of trade agreements between the host and the third countries. Second, in the case of the Vietnamese supporting industries between 2000 and 2012, Export-platform FDI generates a negative effect. Moreover, local content requirement, and trade agreements between Vietnam and other countries positively impacts the production level of these industries whereas third countries size has an ambiguous impact.

Keywords: export-platform FDI; production of upstream industries; local content requirement; third country size; power of trade agreements; Vietnam (search for similar items in EconPapers)
JEL-codes: F15 F23 O1 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://dx.doi.org/10.5018/economics-ejournal.ja.2017-22
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Working Paper: Impacts of Export-platform FDI on the production of upstream industries - Do third country size, trade agreements and local content requirement matter? Evidence from the Vietnamese supporting industries (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:201722

DOI: 10.5018/economics-ejournal.ja.2017-22

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