ABSTRACT. Fernald and Neiman provide empirical support for the quantitative importance of profits and heterogeneous user costs. Aysan holds that high growth performances experienced by many developing countries may not bring high level of development by taking proceeding slow down of their economies into account. Buch and Kleinert state that through cheaper imported inputs (less dependence on the home market for input sourcing), the effect on profits is strengthened further. Javorcik et al. find a statistically significant and positive association between the presence of American and Asian companies in downstream sectors and the productivity of Romanian firms in the supplying industries.



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