Browsing by Author "Ortiz-Coto, Laura"
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- Análisis del encadenamiento productivo de las empresas multinacionales atraídas por CINDE a Costa RicaThis paper describes backward productive linkages and its determinants for the foreign firms attracted by CINDE and others of the especial regime in Costa Rica. The linkages are defined as local transactions divided by total employees of each firm. With the “Registro de Variables Económicas” of the Central Bank of Costa Rica it is possible to observe transactions at the micro-level, and thus characterize linkages between 2008 and 2017. With diverse specifications of non-balanced panel data we found evidence in favor of greater linkages of the foreign, attracted by CINDE, and other firms in the especial regime relative to local firms. This supports the literature that says firms in developing countries have lower relative performance. Moreover, transactions on non-tradable goods and services are mainly done through local firms on the common regime. In contrast, foreign firms in the especial regimen are the ones that supplies tradable goods and services to multinational firms. Particularly, services suppliers have increased in quantity and also have higher growths of their transaction amounts with all groups of multinationals attracted to the country. There is still a lot of margin to improve for the local firms to be the major suppliers in the key inputs needed by multinationals. Additionally, some costs of non-tradables could diminish competitiveness. The main example is the generation, transmission, and distribution of electric energy. We argue it is in the investments promotion where public policy could promote economic growth and higher linkages of Costa Rica and the global value chains.
- Contrafactual: participación de la Zona Franca en la actividad económica costarricenseWe do a computation about the impact of the Free Zone in Costa Rica. We sum the transactions amount due to firms linked to this regime conditioning on the differences for buys and sells between local firms and multinationals (MNCs). Also, we compute and add indirect effects. We use the evidence from Alfaro-Ureña, Manelici y Vásquez (2019) about productivity improvements of local suppliers to MNCs and the evidence from Huertas-Morales, Loaiza-Marín y Ortiz-Coto (2021) about higher linkages of MNCs relative to local firms. This information allow us to compute the counterfactual about how transaction amounts would diminished in Costa Rica without the firms producing in the Free Zone. We compare our results with the “Balance de Zonas Francas” published by Procomer. In general, that Balance states that the importance of the Free Zone in Costa Rica is 6.7% of GDP in 2016, while our proposed computation measures 8.18% of GDP for the same year.