ABSTRACT. Antràs et al. develop and test a model of the operational and financial decisions of firms as they exploit their technologies in countries with differing levels of investor protections. Using a comprehensive data set of firms operating in Romania, Javorcik et al. test whether there exists a difference in the magnitude of vertical spillovers associated with multinationals from different regions of the world (Europe, America and Asia). Desmet and Rojas remark that learning spillovers are a pure externality, nonappropriable by firms, and affecting the whole economy.