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The relationship between foreign capital flows and productivity is still puzzling. We extend the literature on the effect of foreign private capital flows on productivity growth by investigating the effects of the flows across heterogeneous recipient sectors, using a unique hand-collected...
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whether foreign direct investment affects the behaviour of local firms with respect to investment, product innovation and … perception and eality. The presence of foreign investment has not affected the behaviour of the vast majority of domestic firms … in terms of their investment, production of similar products to foreign firms, production of different products to avoid …
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