Capital Intensity and Export Propensity in Some Latin American

Kim Sosin () and Loretta Fairchild

Oxford Bulletin of Economics and Statistics, 1987, vol. 49, issue 2, 191-208

Abstract: This paper tests an eclectic theory of the relationship of choice of factor proportions to foreign ownershi p, export propensity, and level of development, using a sample of fir ms in several industries from four areas of Latin America. In eclecti c technology theory, provided that foreign ownership is a positive de terminant of capital intensity, higher export propensity by transnati onal firms is, ceteris paribus, a cause of lower capital intensity. M ore "appropriate" technology and the associated employment benefits will tend to follow from a policy of encouraging entry of exporter f irms and promoting international competition. Copyright 1987 by Blackwell Publishing Ltd

Date: 1987
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