Trade & FDI in Petroleum Exporting Countries: Complements or Substitutes?

46 Pages Posted: 9 Dec 2005

See all articles by Semyon Vavilov

Semyon Vavilov

University of Paris I Pantheon-Sorbonne

Date Written: 2005

Abstract

The paper presents econometric analysis of relationship between foreign direct investment and international trade. Theory suggests that complementarity or substitutability between exports/imports and FDI depend on types of FDI and disaggregation level. Nevertheless, most empirical works find very seldom substitutability effects. The results of panel data estimation show substitutability between FDI and trade in petroleum exporters of ex-USSR and complementarity in the rest of the countries of the same region. Also found that such effects are repeated in five biggest petroleum exporters and other transition economies of Central and Eastern Europe.

Keywords: Foreign Direct Investment, International Trade, Oil & Gas, Transition Economies

JEL Classification: F21, Q39

Suggested Citation

Vavilov, Semyon, Trade & FDI in Petroleum Exporting Countries: Complements or Substitutes? (2005). Available at SSRN: https://ssrn.com/abstract=868989 or http://dx.doi.org/10.2139/ssrn.868989

Semyon Vavilov (Contact Author)

University of Paris I Pantheon-Sorbonne ( email )

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