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"Javorcik, Saggi, and Spatareanu use a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from foreign direct investment. Investor's Country of origin may matter for spillovers to domestic producers in upstream sectors (supplying intermediate in its in two ways. First, the share of intermediate inputs source by multinationals from a host country is likely to increase with the distance between the host and the source economy. Second, the saucing pattern is likely to be affects by preferential trade agreements that cover some but not other sources economies. In this case, the cover some but not other source economies. In this case the Association Agreement signed between Romania and the European Union (EU) implies that inputs sourced from the EU are subject to a lower tariff than inputs sourced fro

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