“…By investing abroad, foreign multinationals expose local firms and workers to new technologies and know‐how, as well as to competition, all of which may drive productivity improvements, reduce market shares of less competitive firms, or induce exit by uncompetitive domestic firms. Joining the supply chain of foreign investors can generate large benefits for local suppliers (e.g., Newman et al, 2015, on Vietnam) that may persist over time (e.g., Alfano‐Urena et al, 2022, on Costa Rica). Domestic firms that are not linked to GVCs or foreign firms may also benefit, for example, if they share suppliers (e.g., Kee, 2015, on Bangladesh).…”