The impact on wages, employment and exports of backward linkages between multinational companies and SMEs
The impact on wages, employment and exports of backward linkages between multinational companies and SMEs
- Author: Leiva, Juan Carlos; Monge Rodríguez, Ricardo; Rodríguez-Alvarez, Juan Antonio
- Physical description: páginas. 98-12
- UN symbol (Signature): LC/PUB.2017/24-P
- Date: 1 December 2017
Abstract
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.