Column (1) of Table 9 reports the level and rate effects of spillovers from importintensive
inputs of foreign firms in downstream industries. The estimated coefficient of
(FDI_down_impt) is negative and statistically significant at a 99 percent confidence interval. The
level effect, -0.0115 coefficient on the downstream imports, suggests that the productivity level
of average firms falls by about 1.15 percent as the proportion of downstream imported
intermediate good rises by 1 percent, ceteris paribus. Meanwhile, the estimated rate effect
(FDI_down_impt*time) is positive and statistically significant at a 95 percent confidence
interval. The 0.0016 coefficient on the rate effect of downstream imports implies that factor
output increases approximately 0.16 percent as the proportion of downstream materials imported
rises by 1 percent. Together, they indicate that the presence of FDI importers benefits domestic
firms in the long run.