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Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states

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  • Octavio Romano Escobar Gamboa

Abstract

This article studies the location pattern of foreign direct investment (FDI) in Mexico for the period 1994-2004. An empirical model is specified based on recent FDI theories. This model is estimated using state-level data and employing spatial econometric techniques. Results suggest that higher education levels and lower delinquency rates are important determinants to attract FDI. Results also suggest a relationship of complementarity between inbound FDI to the host state and inward FDI to its neighboring states.

Suggested Citation

  • Octavio Romano Escobar Gamboa, 2013. "Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(7), pages 993-1012, October.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:7:p:993-1012
    DOI: 10.1080/09638199.2011.624190
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    References listed on IDEAS

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    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
    2. Aaron Tornell & Frank Westermann & Lorenzo Martinez, 2004. "Nafta and Mexico Less-than-Steller Performance," UCLA Economics Working Papers 833, UCLA Department of Economics.
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    Cited by:

    1. Henning Mühlen & Octavio Escobar, 2020. "The role of FDI in structural change: Evidence from Mexico," The World Economy, Wiley Blackwell, vol. 43(3), pages 557-585, March.
    2. Sarker, Bibhuti & Serieux, John, 2023. "Multilevel determinants of FDI: A regional comparative analysis," Economic Systems, Elsevier, vol. 47(3).
    3. 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.
    4. Eric Evans Osei Opoku & Alex O. Acheampong & Janet Dzator & Nana Kwabena Kufuor, 2022. "Does environmental sustainability attract foreign investment? Evidence from developing countries," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3542-3573, November.
    5. Hong Hiep Hoang & Cong Minh Huynh & Nguyen Minh Huy Duong & Ngoc Hoe Chau, 2022. "Determinants of foreign direct investment in Southern Central Coast of Vietnam: a spatial econometric analysis," Economic Change and Restructuring, Springer, vol. 55(1), pages 285-310, February.
    6. Víctor Hugo Torres Preciado & Mayrén Polanco Gaytán & Miguel A. Tinoco Zermeño, 2017. "Dinámica de la inversión extranjera directa en los estados de México: un análisis de cadenas de Markov espaciales," Contaduría y Administración, Accounting and Management, vol. 62(1), pages 141-162, Enero-Mar.
    7. Lisha He, 2022. "Spatial Linkages in Chinese Service and Manufacturing Outward Fdi: Empirical Evidence From the United States," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 113(5), pages 450-468, December.
    8. Felipe J. Fonseca & Irving Llamosas-Rosas, 2019. "Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 265-284, April.
    9. Llamosas-Rosas Irving & Fonseca Felipe J., 2018. "Determinants of FDI Attraction in the Manufacturing Sector in Mexico, 1999-2015," Working Papers 2018-07, Banco de México.

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