We use unique plant-level data to study the link between the local availability of services and the decision of … international sourcing of materials depends on a firm's productivity and the availability of local services. These predictions are … materials to sales. In addition, we find evidence that services grease the wheels of international commerce: A greater …

; distinguish spillovers from export-oriented vs domestic-market-oriented FDI; and allow for differing effects, depending on … domestic firms' export activities. The results suggest that the mechanisms through which spillovers affect domestic firms are …