Supplying inputs to foreign affiliates is consistently found to be an important source of productivity gains for domestic firms. We analyse the impact of border regimes on the existence and size of cross-border indirect productivity effects, exploiting variation in the pace and extent of...

By sharing production resources, integrated firms have higher returns on investment for intangible knowledge-based assets in comparison to stand-alone firms (Markusen 1995). Building on a single-leader-multi-follower game, this paper considers business groups, where a parent firm (the leader)...