This paper studies the impact of input-trade liberalization on firms' decision to upgrade foreign technology embodied in imported capital goods. The empirical analysis is motivated by a simple theoretical framework of endogenous technology adoption, heterogeneous firms and imported inputs. The...

This paper studies the effects of FDI liberalization on domestic downstream firms’ technology upgrading through two main mechanisms. Domestic final good producers might benefit from horizontal and vertical FDI technological spillovers. These effects can be unequal across domestic firms...