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Local intermediate inputs and the shared supplier spillovers of foreign direct investment (English)

Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms...
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Kee,Hiau Looi.

Local intermediate inputs and the shared supplier spillovers of foreign direct investment (English). Paper is funded by the Strategic Research Program (SRP)|Policy Research working paper|no. WPS 7050 Washington, DC: World Bank Group. http://documents.worldbank.org/curated/en/981581468337490335

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