Do domestic firms benefit from the presence of foreign multinational firms? The FDI spillovers literature addresses this very issue, primarily examining whether the presence of foreign firms in a host market leads to technology spillovers and upgrading in domestic firms. A key finding is that spillovers depend on the absorptive capacity of the domestic firm. Yet, in conceptualizing absorptive capacity, scholars have largely overlooked how social structure shapes it. Integrating insights from...[Show more]
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