Missing Links: Foreign Investment and Industrial Development in Costa Rica and Mexico

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Economic upgrading through global value chain participation: which policies increase the value-added gains? (2017, background): “Indeed, Paus and Gallagher (2008) concluded in their literature overview that regressions based on cross-sectional data tend to find positive spillovers, while those based on panel data are more likely to find negative spillovers.”
Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization (2018, background): “Country-case studies and empirical investigations of firm-level technological spillovers generated by FDI have provided repeated evidence that the transfer of export capabilities to local firms is highly conditional on a series of factors relating to the technological distance between the investing ”
Local sourcing in developing countries: The role of foreign direct investments and global value chains (2019, background): “…involvement in GVCs (through both higher imports and exports of intermediate inputs) can improve the capabilities of local firms, since it exposes them to stronger competition, more intense information flows, and greater production complexity (Paus and Gallagher, 2008; Farole and Winkler, 2014).”