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This study examines how vertical spillovers through backward and forward linkages with multinationals relate to productivity and inputs allocation for garment firms in Myanmar. The results confirm that while these linkages promote spillover effects on productivity growth with capital accumulation, they fail to accelerate employment growth. The Myanmar government has emphasized employment growth by attracting foreign investment. Although linkages with multinationals lead to productivity improvement, such positive effects may be realized without clear evidence of increased job opportunities.

Firm performance and backward and forward linkages: the case of the garment sector in Myanmar