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Author:Kokko, A.
Zejan, M.
Tansini, R.
Title:Trade regimes and spillover effects of FDI: evidence from Uruguay
Journal:Weltwirtschaftliches Archiv
2001 : VOL. 137:1, p. 124-149
Index terms:Foreign investment
Direct investment
Trade policy
Uruguay
South America
Freeterms:FDI
Language:eng
Abstract:This paper examines differences in the character and impact of foreign direct investments (FDI) entering Uruguay during import substitution, pursued until 1973, and the subsequent more outward-oriented trade regime. Regression analysis shows that the labor productivity of local firms is positively related to the presence of older import-substituting multinational companies (MNCs) in their industry. The presence of foreign affiliates established after 1973 has no apparent impact on local productivity, but seems to raise the likelihood that local firms engage in exporting.
SCIMA record nr: 224934
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