The impact on wages, employment and exports of backward linkages between multinational companies and SMEs
Juan Carlos Leiva,
Ricardo Monge Rodríguez and
Rodríguez-Alvarez, Juan Antonio
Revista CEPAL, 2017
Policymakers often look for ways to attract foreign direct investment (FDI) by multinational corporations (MNCs). This paper estimates the impact of a programme, Costa Rica Provee, that seeks to increase backward linkages between small and medium-sized enterprises (SMEs) and MNCs in Costa Rica. The impacts were measured by reference to real average wages, employment demand and the probability of exporting, using a combination of fixed effects and propensity score matching with panel data on treated and untreated firms for 2001-2011. Programme beneficiaries evinced higher average wages, labour demand and export probabilities than untreated firms, with dose and duration also having a major influence.
Keywords: EMPRESAS TRANSNACIONALES; INVERSION EXTRANJERA DIRECTA; PEQUEÑAS EMPRESAS; EMPRESAS MEDIANAS; SALARIOS; EXPORTACIONES; ESTUDIOS DE CASOS; TRANSNATIONAL CORPORATIONS; FOREIGN DIRECT INVESTMENT; SMALL ENTERPRISES; MEDIUM ENTERPRISES; WAGES; EXPORTS; CASE STUDIES (search for similar items in EconPapers)
JEL-codes: G28 L53 O25 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ecr:col070:43453
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