Conference Paper
How Inward FDI Shapes the Dynamics of Exports and R&D Activities: Evidence from Tunisian Manufacturing Firms
No.
ERF30_120
Publisher
ERF
Date
March, 2024
Foreign Direct Investment (FDI) can inject technology and knowledge into host-country economies, potentially influencing their firms' R&D investments and export capacities; as a result, these firms may engage in more or less R&D (exports), potentially shaping the interaction between the two strategies. This paper investigates whether and when these strategies are complementary and reinforce each other, or whether they are substitutes, and should not be jointly pursued, as well as how combining the two strategies may lead to synergies positively affecting growth. Using four different clusters of firms, the findings suggest that R&D and exports positively reinforce each other in a dynamic virtuous circle to boost exports for firms with no foreign participation, whereas substitutability effects emerge for R&D activity, primarily for firms with foreign participation.
Authors
Wided Mattoussi
University of Tunis and LAREQUAD
Authors
Younes Ben Zaied
Associate Professor, Finance and Decision-Making Processes, EDC...
Authors
Omar Al-Tabbaa
Chair (full professor), International Business and Strategy,...
Authors
Foued Mattoussi
Assistant Professor of Economics, Faculty of Legal,...