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The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors....
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productivity is internationalization by connecting them to global value chains (GVCs). However, participating in GVCs is not easy …
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We analyse how changes in international trade integration affect productivity and the functional income distribution … integration increases productivity. Second, we show that international trade integration is associated with higher labour shares …
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