Latin American Firm Cooperation Payoff Evidence

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.