Outward FDI and Trade Performance: An Indication from Sweden Perspective

by Mohammad Hasan

Institution: Blekinge Institute of Technology
Year: 2007
Keywords: företagsekonomi; business administration - international business; fdi; export; aggregate regional level
Record ID: 1367941
Full text PDF: http://www.bth.se/fou/cuppsats.nsf/6753b78eb2944e0ac1256608004f0535/61f56c571369dd28c12572bc006290e6?OpenDocument


In the global world FDI is the most prominent economic development factor for the growth of home and host countries GDP. FDI and Trade performances are positively engage in the complementarity or substitutability relationship depending on the country factors advantages and microeconomic and macroeconomic scale of economies in firm and industrial level. The main objective of this paper is to expose how outward FDI influence home country’s export performance. Previously there have been conducted a lot of empirical studies on country’s trade (export) performance and FDI flows. This project carries out to analyses aggregate regional level data and be tested by OLS and two stage-least-square (2SLS) time series regression analyses. The empirical analysis founds, outward FDI and exports are statistically positively significant in firm and industry level.