One may argue that as the technology gap between domestic firms and FDI enterprises is
more likely to occur in high-tech industries than in low-tech industries, the unavailable material
inputs or components to produce final goods in the host country are probably concentrated in the
high-tech rather than the low-tech industries. To tackle this argument, we also divide our
domestic sample into two subsamples, namely, high-tech and low-tech industries. Girma et al.
(2008) address a similar question in the context of exporting linkages when analyzing technology
spillovers from export-oriented versus domestic-market oriented FDI employing firm-level panel
data for the manufacturing sectors in the UK. Similar to the study by Girma et al. (2008), we
explore the different effects in both types of sectors in the context of importing linkages.