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Firm heterogeneity and development: Evidence from Latin American countries

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  • Han-Hsin Chang
  • Charles Van Marrewijk

Abstract

We analyze normalized productivity differences for 15 developing Latin American countries and four firm types: National Domestic, National Exporter, Foreign Domestic, and Foreign Exporter. There are no productivity thresholds for viability, export activity, or multinational activity, but we do find a clear size productivity premium and development productivity premium in the manufacturing sectors. We also find a clear foreign-ownership productivity premium, both for domestic firms and for exporting firms and both for manufacturing sectors and services sectors. In contrast, we only find an export productivity premium for national firms in the manufacturing sectors.

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File URL: http://hdl.handle.net/10.1080/09638199.2012.704063
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 22 (2013)
Issue (Month): 1 (February)
Pages: 10-51

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Handle: RePEc:taf:jitecd:v:22:y:2013:i:1:p:10-51

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Cited by:
  1. Naudé, Wim & Gries, Thomas & Bilkic, Natasa, 2013. "Firm-Level Heterogeneity and the Decision to Export: A Real Option Approach," IZA Discussion Papers 7346, Institute for the Study of Labor (IZA).

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