The effects of imported intermediate on domestic competitive sectors depend on technology types and the trade relations with exporting countries. The productivity effects of imported input on final sectors using the imported intermediates are affected not by shares of imports but by amounts of...

In this paper, we explicitly address the role of comparative advantage in effects of outward FDI on domestic productivity, both theoretically and empirically. In the theoretical framework, we place Irarrazabal, Moxnes and Opromolla’s (2009) outward FDI model into Bernard, Redding and...