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Empirical studies analysing productivity effects of inward FDI in Latin America (LA) are inconclusive. We argue that … FDI to generate productivity effects differs across sectors. For these reasons and because sectoral FDI intensities vary … significantly among LA countries and change over time, we investigate the productivity effects of FDI in eight different sectors …
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simultaneity bias in productivity estimates through semi-parametric techniques, we find that changes in domestic firms’ TFP are …
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