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Browsing Documentos de Trabajo by Author "Badilla-Maroto, Marco A."
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- Importancia relativa de los beneficios intangibles de la Inversión Extranjera Directa (IED) en Zonas Francas en Costa RicaThis paper quantifies intangible benefits that arise from the interaction of multinational companies in the Free Trade Zone regime with their workers and with companies of Costa Rican capital (domestic). We compare those benefits to the corresponding benefits of multinationals that operate outside this regime. Specifically, we calculate the increase in productivity that domestic firms experience for supplying multinationals, and the additional salary (or wage premium) experienced by multinational workers compared to what they would receive by working in domestic companies. We find that those new suppliers of multinationals in the Free Trade Zone experience a 12% increase in their productivity from the first year after the start of the supply relationship, while those that supplied multinationals outside of this regime only received a 5% productivity increase. Likewise, the wage premium of the multinational company outside the Free Trade Zone is 6.2%, while the wage premium of multinationals in the Free Trade Zone is 14.3%.