Linkages with Multinationals and Domestic Firms' Performance
Date issued
August 2019
Subject
Trade Policy;
Firm Performance;
Investment Attraction Policy;
Exporting Firm;
Tax Rate
JEL code
E22 - Investment • Capital • Intangible Capital • Capacity;
F23 - Multinational Firms • International Business;
D22 - Firm Behavior: Empirical Analysis;
D24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity;
F21 - International Investment • Long-Term Capital Movements;
D21 - Firm Behavior: Theory;
D2 - Production and Organizations
Country
Uruguay
Category
Technical Notes
In this paper, we aim to explore how the linkages between affiliates of multinational companies and local firms affect the domestic economy using firm-to-firm linkages from Uruguay. For that purpose, we use a unique database that combines matched Value Added Tax (VAT) records on sales, customs data on imports and exports and other administrative databases containing firm-level information on the number of employees, sector, foreign ownership status, date of establishment and location.