Abstract Purpose The aim of this study was to investigate how the productivity spillover effects of foreign direct investment (FDI) in the Latin American economies are manifested. Specifically, the paper sought to identify the role of foreign presence and government intervention through an industrial policy on total factor productivity in Latin American countries. Design/methodology/approach The analyses in this study were performed in two stages. The first step consisted of decomposing the total factor productivity growth, in technical efficiency change (EC) and technological efficiency change (TC), using the Malmquist Productivity Index (MPI). In the second stage of this research, the specific EC and TC indexes of each country – obtained with the MPI – are used alternately as a dependent variable in a regression analysis with dynamic panel data. The variables were collected from the World Development Indicators database, available in the World Bank database, and cover the period from 1994 to 2014. Findings FDI has contributed to not only the catch-up effect – i.e. to continuous improvements in production processes and products using the same technology – but also in terms of productivity, due to technological innovations and the frontier-shift effect. Industrial policies, such as the FDI attraction, when established in isolation, are not able to contribute to the generation of productivity spillovers, measured in terms of technical and technological efficiency. Research limitations/implications The limitation of the present study lies precisely in the nature of data aggregation that actually limits a more in-depth analysis of the object of study. The available data set for the analysis in this study does not provide a detailed examination of the domestic corporations’ characteristics, the sectors and motivations of multinational corporations of each one of the analyzed economies. Practical implications The outcomes of this research present several practical implications, as its development is based on the recognition that productivity is essential for the development of a country. It remains the Achilles' heel of the Latin American economies, and therefore, it is necessary and essential to move toward a change in its development model and, more specifically, in its industrial policies, with a focus on investment and innovation to achieve the new sustainable development objectives. Among the main challenges presented to governments in the region is the emergence of policies aimed at establishing a sustainable development path through industrial policies capable of accelerating productivity growth. Social implications The evidence presented in this study highlights the importance of better understanding the real effects of state intervention through the use of industrial policy instruments and how they affect foreigners’ investment decisions, as the lack of clear industrial policy orientation that is systematically integrated with MNEs’ operations may result in economic development opportunities below the ideal. Originality/value The research results corroborate the foundations of spillover effects theory and with the recognition that the intensity of the effect of the foreign participation on the performance of economies will depend on the absorption capacity of host economies.

Resumen Kroton Educacional es una empresa brasileña que se destaca como la líder mundial en el mercado de servicios educativos. Este artículo tiene como objetivo efectuar un análisis del desempeño económico de Kroton Educacional durante el período de 2011 a 2016; un estudio que tiene como base la información por segmentos operacionales referentes a esa empresa. La recolección de datos fue efectuada de acuerdo con los estados financieros de la compañía; además, se identificó información por segmentos divulgados conforme con el pronunciamiento CPC 22: Informações por Segmento. Mediante el cálculo de los indicadores de rentabilidad, se observa que el segmento de enseñanza superior a distancia (EAD) fue el que más contribuyó al margen de lucro de la empresa. Aunque el segmento de enseñanza superior presencial fue responsable de la mayor parte de los ingresos, no se destacó en términos del margen de lucro o de rentabilidad. Se observa asimismo que el segmento de educación básica fue el de mayor rentabilidad para la empresa. De igual modo, la compañía ha invertido en estrategias de expansión y diversificación, con lo que ha incrementado su rentabilidad. En consonancia, el análisis efectuado se apoya en la comprensión detallada del desempeño económico de la empresa. De tal modo, la contribución de este artículo importante, pues propone análisis económicos basados en los indicadores por segmentos operativos de las empresas.

Abstract Kroton Educacional is a Brazilian company that stands out as a worldwide leader in the educational service market. This study aims to conduct an analysis to Kroton Educacional’s financial performance during the term 2011-2016. The study draws on the company information reported per each operative segment. The data collection was carried out based on the financial statements of the company. In addition, the information was identified per segment, as disclosed following the Statement CPC 22: Informações por Segmento [Information per Segment]. The calculation of profitability indicators shows that the Distance Higher Education (DHE) was the one providing the highest profit margin to the company. Even though the In-Person Higher Education segment accounted for most of the income, the profit margin or profitability in this segment were not notable. Likewise, it was observed that the Basic Education was the most profitable segment for the company. In the same vein, the company has made some investments in expansion and diversification strategies, which has enhance the company profitability. Consequently, the analysis carried out is supported by a detail understanding of the company’s financial performance. This way, the contribution by this article is significant as it proposes financial analyses of the company based on the indicators per operative segment.

Resumo A Kroton Educacional é uma empresa brasileira que se destaca como a líder mundial no mercado de serviços educacionais. Este artigo tem por objetivo efetuar uma análise do desempenho econômico da Kroton Educacional no período de 2011 a 2016, tendo por base as informações por segmentos operacionais referentes a essa empresa. A coleta de dados foi efetuada a partir das demonstrações contábeis da companhia e identificaram-se as informações por segmentos divulgadas conforme o pronunciamento CPC 22: Informações por Segmento. A partir do cálculo dos indicadores de lucratividade e de rentabilidade, observa-se que o segmento de ensino superior à distância (EAD) foi o que mais contribuiu para a lucratividade da empresa. Já o segmento de ensino superior presencial, embora tenha sido responsável pela maior parte das receitas, não se destacou em termos de lucratividade ou de rentabilidade. Nota-se que o segmento de educação básica foi o que teve maior rentabilidade para a empresa. A companhia tem investido em estratégias de expansão e diversificação, incrementando sua lucratividade e rentabilidade. A análise efetuada auxilia para que o desempenho econômico da empresa seja compreendido com maior nível de detalhamento. Assim, destaca-se a contribuição do artigo ao propor análises econômicas baseadas nos indicadores por segmentos operacionais das empresas. Códigos JEL: M21, M41