Linkages with Multinationals and Domestic Firms' Performance

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.