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The impact on wages, employment and exports of backward linkages between multinational companies and smes

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Pages (from-to)98-123
Number of pages26
JournalCepal Review
Issue number123
DOIs
StatePublished - Dec 2017

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth
  2. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure
  3. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

Keywords

  • Case studies
  • Costa Rica
  • Employment
  • Exports
  • Foreign direct investment
  • Medium enterprises
  • Small enterprises
  • Transnational corporations
  • Wages

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