Gustavo Bittencourt (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República) Rosario Domingo (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
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The objective of this paper is to measure, through econometric techniques, the existence of horizontal and vertical spillovers form Transnational Corporations presence in Uruguayan's manufacturing sector in 1990-2000. We concluded that the factorial productivity of the firms has a positive tendency between 1990-96, and a negative tendency between 1997-2000. The subsidiaries of TNCs has a higher productivy than the local firms in both periods, but if we incorporate fixed effects by firm in the model, the results show that the subsidiaries do not improve their performance in a different way than local firms. There are signs of vertical spillovers in 1990-96. The domestic firms that employ people with better skills have improved their productivity. The industrial promotion instruments might have contributed to increase the productivity of local firms, in spite of the higher imports and the TNCs competence.
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Find related papers by JEL classification: F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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