Integración regional y su relación con la dinámica de las plantas: un enfoque de diferencias-en-diferencias

In this work we examine technology/productivity spillovers to Uruguayan manufacturing firms through trade, foreign direct investment (FDI) and learning by exporting, for the period 1997-2001. This work contributes to the existing literature by providing evidence of the dynamic gains from opening up to trade for a small developing country, analysing the various possible channels of international technology diffusion at he firm level. We use various methodologies. To this end we use various methodologies and we take into account the effect of endogenous technological capabilities of the firms. We find evidence of positive effects of imported intermediates, exports and foreing ownership on productivity. On the other hand the results for multinational presence at the industry level and backward linkages on domestic firms productity are mixed. Nevertheless, those firms that undertake their own R&D and/or training of workers and hence have higher absorptive capacity seem to be in a better position to take advantage of external knowledge. These results would indicate that absorptive capacity matters to take advantage of increased openness and FDI, so trade liberalization along with policies aimed to improve absorptive capacity such as investign in R&D and the training of workers through training are likely to play a role in facilitating knowledge spillovers and productivity gains.