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.
How Inward FDI Shapes the Dynamics of Exports and R&D Activities: Evidence from Tunisian Manufacturing Firms

Authors

Wided Mattoussi

University of Tunis and LAREQUAD

How Inward FDI Shapes the Dynamics of Exports and R&D Activities: Evidence from Tunisian Manufacturing Firms

Authors

Younes Ben Zaied

Associate Professor, Finance and Decision-Making Processes, EDC...

How Inward FDI Shapes the Dynamics of Exports and R&D Activities: Evidence from Tunisian Manufacturing Firms

Authors

Omar Al-Tabbaa

Chair (full professor), International Business and Strategy,...

How Inward FDI Shapes the Dynamics of Exports and R&D Activities: Evidence from Tunisian Manufacturing Firms

Authors

Foued Mattoussi

University of Jendouba and University of Tunis