Does enterprise participation in global markets ensure sustainable income growth? Policies have often been designed in the belief that this is true, but competitiveness and participation in international markets may take very different forms, and developing countries do not always benefit. This...

The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors....