Impact of South-South FDI and Trade on the Export Upgrading of African Economies

30 Pages Posted: 16 Jan 2014

See all articles by Alessia A. Amighini

Alessia A. Amighini

Università del Piemonte Orientale; Catholic University of the Sacred Heart of Milan

Marco Sanfilippo

University of Antwerp - Institute of Development Policy and Management

Date Written: October 2013

Abstract

We explore the impact of FDI and imports, disaggregated at the sectorial level, on the upgrading of African exports. We distinguish flows from other developing countries (South-South) and developed countries (North-South), and find that they impact differently on the ability of recipients to absorb the positive spillovers. Results support the view that South-South integration holds a strong potential for African economies. South-South FDI foster diversification of low-tech industries and raise the average quality of manufacturing exports, while importing from the South increases the ability to expand the variety of manufactured exports and to introduce more advanced goods in less-diversified economies.

Keywords: South-South FDI, South-South trade, export diversification, export upgrading, Africa

JEL Classification: F14; F21

Suggested Citation

Amighini, Alessia A. and Sanfilippo, Marco, Impact of South-South FDI and Trade on the Export Upgrading of African Economies (October 2013). Robert Schuman Centre for Advanced Studies Research Paper No. 2013/75, Available at SSRN: https://ssrn.com/abstract=2378835 or http://dx.doi.org/10.2139/ssrn.2378835

Alessia A. Amighini (Contact Author)

Università del Piemonte Orientale ( email )

Via Perrone 18
28100 Novara
Italy

Catholic University of the Sacred Heart of Milan ( email )

Largo Gemelli, 1
Via Necchi 9
Milan, MI 20123
Italy

Marco Sanfilippo

University of Antwerp - Institute of Development Policy and Management ( email )

City campus building S
Lange Sint Annastraat 7
Antwerp, 2000
Belgium

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