In this paper, I present novel empirical evidence in support of the idea that FDI firms can act as an important driver of regional growth, by acting as a source of new knowledge and technologies to local suppliers in a host economy. For the analysis, I use unique firm level data that I obtained...

Recent research on productivity spillovers from affiliates of multinational corporations in developing and emerging economies finds that backward linkages from affiliates of foreign-owned firms to local suppliers constitute the main channel transmitting productivity spillovers. This finding has...