Suppliers of multinationals and the forced linkage effect: Evidence from firm level data

► We provide a new angle of looking at backward spillovers from multinationals. ► We argue that multinationals may force their customers to adopt new practices, and punish if these are not implemented to their satisfaction. ► We provide empirical evidence for such a “forced linkage effect” from firm level data for Eastern Europe and Central Asia. ► Results show that domestic firms only benefit from backward spillovers if they experience pressure from their customers.