All in all, the findings of this study can be interpreted as evidence of growth-enhancing effects of outward FDI, which is inconsistent with the simplistic notion that outward investment diverts resources away from domestic economic activity. Rather, the evidence presented here suggests that outward-investing firms combine home production with foreign production to reduce costs and to increase their competitiveness both internationally and domestically. This benefits the entire domestic economy due to the increased productivity of the investing firms and the potential productivity spillovers to local firms.