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El efecto de las empresas extranjeras y la competencia en la eficiencia del sector manufacturero uruguayo 1988-1994

Author

Listed:
  • Ruben Tansini

    () (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Rosario Domingo

    () (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

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.

Suggested Citation

  • Ruben Tansini & Rosario Domingo, 2010. "El efecto de las empresas extranjeras y la competencia en la eficiencia del sector manufacturero uruguayo 1988-1994," Documentos de Trabajo (working papers) 1910, Department of Economics - dECON.
  • Handle: RePEc:ude:wpaper:1910
    as

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    File URL: http://cienciassociales.edu.uy/departamentodeeconomia/wp-content/uploads/sites/2/2013/archivos/1910.pdf
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    References listed on IDEAS

    as
    1. Blomstrom, Magnus & Kokko, Ari, 1998. " Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-277, July.
    2. Blomstrom, Magnus & Wolff, E.N., 1989. "Multinational Corporations And Productivity Convergence In Mexico," Working Papers 89-28, C.V. Starr Center for Applied Economics, New York University.
    3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Foreign direct investment; Spillovers; Technical efficiency; Productivity; Stochastic Frontier Production Functions;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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