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Dynamic of foreign direct investment in the states of Mexico: An analysis of Markov's spatial chains

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Listed:
  • Víctor Hugo Torres Preciado

    (Universidad de Colima, Mexico)

  • Mayrén Polanco Gaytán

    (Universidad de Colima, Mexico)

  • Miguel A. Tinoco Zermeño

    (Universidad de Colima, Mexico)

Abstract

The aim of this investigation is to analyze the evolution of the spatio-temporal distribution of foreign direct investment (FDI) across Mexican states. The literature that analyzes foreign direct investment in Mexico is numerous and diverse; however, it is argued that the analysis of the spatio-temporal distribution of FDI conditioned to spatial interaction effects in Mexico is still absent. In this sense, by applying the spatial Markov chain approach as proposed by Rey (2001), we found a divergence process in the FDI inflows among Mexican states that seem to get stronger over time. In particular, during the period from 2006 to 2013, the process of divergence toward higher-FDI inflows quantiles occurs among states spatially associated with neighbors in lower-FDI quantiles.

Suggested Citation

  • Víctor Hugo Torres Preciado & Mayrén Polanco Gaytán & Miguel A. Tinoco Zermeño, 2017. "Dynamic of foreign direct investment in the states of Mexico: An analysis of Markov's spatial chains," Contaduría y Administración, Accounting and Management, vol. 62(1), pages 163-183, Enero-Mar.
    • Handle: RePEc:nax:conyad:v:62:y:2017:i:1:p:163-183
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign direct investment; Spatial Markov chains; Mexico;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions

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