Sourcing patterns of firms in Export Processing Zones (EPZs): An empirical analysis of firm-level determinants

Using firm-level data from enterprises in Export Processing Zones in Costa Rica (i.e., operating under the Export Processing Zone regime in that country), we perform an econometric analysis of firm- and industry-specific characteristics thought to affect the propensity of those enterprises to source intermediate inputs in the local economy. The results suggest that the industry of the firm, the firm's capital intensity, the firm's age and size, whether the firm is majority-owned by locals, and the proportion of the output sold in the local market are all correlated with that propensity.