Journal
REVIEW OF WORLD ECONOMICS
Volume 153, Issue 4, Pages 703-734Publisher
SPRINGER
DOI: 10.1007/s10290-017-0290-4
Keywords
Export spillover; FDI; Multi-product firms; Unit value; Quality
Categories
Funding
- Agence Nationale de la Recherche of the French government through the program Investissements d'avenir [ANR-10-LABX-14-01]
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This paper studies how the presence of multinational enterprises affects the export performance of Bulgarian manufacturing firms-export spillovers from FDI. Using export data at the firm/product/destination level for the period 2004-2006, it finds positive forward spillover on export value and quantity, related to quality upgrading. Conversely, it finds negative (or insignificant) backward and horizontal spillover on export flows, related to quality downgrading. When aggregating data at the firm level and considering that a firm can operate in several sectors, the paper shows that the presence of foreign input suppliers allows domestic firms to export additional varieties of lower quality and upgrade the average quality of existing varieties, whereas the presence of foreign customers generates the opposite effect.
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