El efecto de las empresas extranjeras y la competencia en la eficiencia del sector manufacturero uruguayo 1988-1994
In this study we estimated Stochastic Frontier Production Functions for different sub-samples of panel data of Uruguayan manufacturing firms, to evaluate the spillover effect of the presence of foreign affiliates and international competition on technical efficiency in locally-owned firms. The results suggest that the presence of FDI has a positive effect on the level of technical efficiency in local firms. Furthermore, we found that average technical efficiency in locally-owned firms in industries where foreign affiliates are present is higher than those of firms in industries with no foreign presence. We also found that significant spillover effects on technical efficiency arise when technology gap between local and foreign firms is moderate, and when the foreign affiliate’s sales are mainly oriented to the local market. Moreover, our results suggest that when foreign firms are present in an industry their positive impact on the technical efficiency of local firms seems to be greater than the impact of competition from imported goods.
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