Regarding the home country export – FDI complementarity question, it is possible that there are smaller effects than in the case of developed countries. In the developed country case, it was noted that there is a potential for complementarity both for horizontal and vertical FDI. With horizontal FDI, it is likely that the host country market share grows sufficiently to stimulate home country production of intermediates; in case of vertical FDI, the competitiveness of the MNC may grow sufficiently to take market shares from foreign firms, either in the home country market or in export markets. In either case, total home country production may grow following FDI. In developing countries, it is possible that the production linkages between parents and affiliates are weaker. The stylized view is that