“…The second stream of theoretical analysis looks at workers or local firms learning from watching or working for foreign firms with a resulting increase in their productivity (Ethier and Markusen, 1996;Fosfuri et al, 2001;Markusen, 2001;Glass and Saggi, 2002). Empirical work in search of spillovers to local firms include Haddad and Harrison (1993), Aitken et al (1996), Blomstrom and Kokko (1998), Blomström and Sjöholm (1999), Aitken and Harrison (1999), Blalock (2002), Javorcik and Spatareanu (2003), Javorcik (2004), Görg and Strobl (2005), and Girma and Görg (2007). Other empirical literature has documented that local firms and their managers often get their start as employees of multinational firms (Katz, 1987;Hobday, 1995;Hall and Khan, 2003).…”