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Outward FDI and exports relation: A heterogeneous panel approach dealing with cross-sectional dependence

Abstract: This paper explores the link between outward foreign direct investment (OFDI) and exports using Spain's flows to the top-50 recipient countries over the period 1995?2019. Methodologically, it addresses two often forgotten features of spatial data (heterogeneity and cross-sectional dependence) by combining a heterogeneous panel approach with the treatment of cross-sectional dependence. Indeed, when addressing cross-sectional dependence, it removes one of its two components (spatial dependence) so that comparing raw and spatially filtered data yields relevant conclusions. Findings show that OFDI has a significant positive effect on exports in the long term, but it is exclusively due to spatial dependence.

 Autoría: Maza A., Gutiérrez-Portilla P.,

 Fuente: International Economics, vol. 170, pp. 174 - 189

 Editorial: Elsevier

 Fecha de publicación: 01/08/2022

 Nº de páginas: 16

 Tipo de publicación: Artículo de Revista

 DOI: 10.1016/j.inteco.2022.04.002

 ISSN: 2110-7017,2542-6869