Latin American Firm Cooperation Payoff Evidence

ABSTRACT

This article examines how cooperation influences firm performance, utilizing pooled regression and instrumental variables on LAIS data covering firms from 2007 to 2017 across 10 Latin American countries. The findings indicate that cooperating firms outperform non-cooperating counterparts, especially when collaborating within their economic group. Furthermore, I find that cooperation is particularly advantageous for small firms, and access to public or private finance enhances returns.

KEYWORDS:

• Cooperation
• coopetition
• firms
• innovations

Acknowledgments

I would like to thank The International Trade Journal’s editor and the anonymous reviewers that substantially improved the quality of the paper because of their comments and suggestions. As always, any remaining errors are my own.

Disclosure statement

No potential conflict of interest was reported by the author.