Effects of hiring former employees of multinationals in the absorptive capacity of local firms

Juan Carlos Leiva (), Juan Antonio Rodríguez Álvarez and Ricardo Monge González
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Juan Carlos Leiva: Tecnológico de Costa Rica, Costa Rica
Juan Antonio Rodríguez Álvarez: Tecnológico de Costa Rica, Costa Rica
Ricardo Monge González: Universidad de Costa Rica, Costa Rica

Contaduría y Administración, 2017, vol. 62, issue 2, 36-37

Abstract: Attracting Foreign Direct Investment seeks, among other goals, increase productivity of local firms through knowledge spillovers. Nevertheless the empirical evidence is contradictory. One influential factor is the absorptive capacity of local firms. This article analyzes the effect of the presence of ex-employees of multinational companies, as employees of local firms in the absorption capacity of these firms. The study was conducted in Costa Rica, a country recognized for its successful strategy in this area. The data come from a survey of 1,167 companies conducted by the Costa Rican Observatory of Small and Mediums Enterprises in 2011. It was found that hiring former employees of multinational companies by local firms has a positive effect on the rate of absorption capacity. In short, this engagement of former employees of multinationals increases by nine percentage points the rate of absorption capacity, with differences for sectors and firms sizes.

Keywords: Absorption capacity; Multinationals companies; SME; Knowledge spillovers; Costa Rica (search for similar items in EconPapers)
JEL-codes: F23 M21 O19 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:nax:conyad:v:62:y:2017:i:2:p:36-37

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