Exporting vs. Outsourcing by MNC Subsidiaries: Which Determines FDI Spillovers?
Using panel data from Venezuelan manufacturing, results from the study point to FDI spillovers, mainly between but also within industries, from export-oriented MNCs to large domestic firms. MNCs that outsource have an incentive to transfer technical knowledge to local upstream suppliers.
Link
http://www.socsci.soton.ac.uk/Economics/Research/Discussion_Papers/2004/0411.pdf