This study examines the role of exports in the transmission of horizontal and vertical spillovers of foreign direct investment for the Turkish manufacturing industry by using firm‐level data. Our objective is to test whether the export capacity of firms is one of the determinants of the occurrence of the horizontal and vertical spillovers generated by foreign direct investment. In order to determine whether the productivity effects arising from horizontal and vertical (backward and forward) spillovers are conditioned by the exports of firms, value added and total factor productivity equations for Turkish manufacturing industry firms for the years 2003–11 are estimated using the panel data method. Our estimation results show that the productivity effects generated by horizontal, backward, and forward spillovers of foreign direct investment are more pronounced for export‐oriented firms.

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