Kee, Hiau Looi2014-10-062014-10-062014-09https://hdl.handle.net/10986/20366Trade liberalizations have been shown to improve domestic firms' performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms' performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms.en-USCC BY 3.0 IGOACCOUNTINGAGGREGATE DEMANDAVERAGE PRODUCTIVITYCAPITAL INVESTMENTCLIMATE CHANGECOMMON MARKETCOMMON MARKETSCONSTRUCTIONCUSTOMSDEVELOPMENT POLICYE-MAILECONOMETRICSECONOMIC DEVELOPMENTECONOMICSELASTICITYELASTICITY OF SUBSTITUTIONEQUIPMENTEXPORT MARKETSEXPORTSEXTERNALITIESFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTGDPGLOBALIZATIONGOVERNMENT POLICIESGROWTH MODELSINPUT PRICESINTERMEDIATE GOODSINTERNATIONAL TRADEMANUFACTURINGMANUFACTURING INDUSTRIESMARGINAL COSTSMARKET COMPETITIONMARKET SHAREMARKET SHARESMATERIALOPEN ACCESSOPEN ECONOMYOVERSEAS BUYERSOWNERSHIP STRUCTUREPECUNIARY EXTERNALITIESPERFORMANCE INDICATORSPOLITICAL ECONOMYPOSITIVE EXTERNALITIESPRICE INDEXPRICE INDEXESPRICE INDICESPRICE LEVELPRODUCT QUALITYPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTION PROCESSPRODUCTIVITYPRODUCTIVITY GROWTHREGRESSION ANALYSISRESULTRESULTSRETURNS TO SCALESEARCHSUBSTITUTIONSUPPLIERSUPPLIERSSUPPLY CHAINTECHNOLOGY TRANSFERTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYTOTAL OUTPUTTOTAL REVENUETOTAL SALESTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYUNEMPLOYMENTUSESVALUE ADDEDWAGEShttps://doi.org/10.1596/1813-9450-7050