via an increase in their productivity. The growing competitive pressure in the upstream sector, induced by global retail … chains, drives least productive firms out of the market and the average productivity of the sector increases. In addition …, retail sector FDI generates productivity gains at the firm level: local suppliers of multinational retailers benefit from the …

This paper analyses the potential for productivity spillovers from inward foreign direct investment using … competition in explaining productivity spillovers within industries. Our empirical analysis yields a number of important findings … unlikely to generate productivity spillovers, while spillovers increase in the capital intensity of foreign affiliates. Second …