The rationale for this distinction is the expectation that the level and rate effects of
vertical spillovers are different between these two types of sectors. Specifically, first, we expect
the rate effect of backward linkages of import-intensive inputs from FDI enterprises to have a
positive relationship with the productivity growth of domestic firms in high-tech industries. For
instance, to produce computers in the host country, FDI_firms often have to import Intel chips or