Second, as regards forward linkages, we find strong evidence that the more intermediate
inputs of foreign importers, the more technology transfers domestic firms acquire in low-tech
industries. Specifically, the coefficient of the interaction term (FDI_up_impt*time) is the largest
in magnitude. It is significant for domestic firms in low-tech industries but is small and
insignificant for local firms in high-tech industries. These results are consistent with our
expectation.