ABSTRACT
Recent applied economics research on FDI productivity effects is developing new strategies to improve the identification of the full range of externality effects that can be linked to the presence and operations of FDI firms and to establish a better understanding of the conditions under which these effects materialise. The previous chapter linked to this latter research angle, by investigating whether and how the technology gap between FDI and Mexican firms and the industry level of agglomeration are influencing intra-industry FDI spillovers.
