Szunomár offers a much-needed summary of the theoretical framework of foreign direct investment (FDI), as well as the concept of internationalization in order to show that traditional theories seem to be insufficient in explaining FDI decisions of emerging multinational enterprises (MNEs)....

Does foreign entry improve host country productivity and welfare? Previous studies have looked at the role of backward linkages with domestic suppliers and their effects on domestic competitors. In this paper, we study how these externalities are affected by technological incompatibilities...

We also show that the evidence that knowledge spillovers flow along the supply chains is more robust than the traditional finding that knowledge spillovers depend on geographical distance or trade flows. Our findings support policies that favour participation in supply chains to foster economic...