... how the technological heterogeneity of subsidiaries plays a determinant role in the generation of both knowledge flows from foreign to domestic firms and to the reverse, all integrated into the same framework. Foreign direct investment (FDI) could contribute to enhancing productivity...

... in the literature. We apply a battery of sensitivity test to ensure that our inferences are robust to a wide range of test specifications, endogeneity concern and sample selection methods. Findings The empirical results show that the effect of political connections on distress risk is strongly heterogeneous...