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The Exchange Rate and Inward Foreign Direct Investment in Mexico

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  • Parajuli, Shanta
  • Kennedy, P. Lynn

Abstract

This paper analyzed the exchange rate and inward foreign direct investment (FDI) in Mexico from the 25 developed countries comprising the Organization for Economic Co-operation and Development (OECD). Our empirical result does not support the significant relationship between exchange rate and exchange rate volatility to determine FDI in Mexico. The wages, export, and distance are found to be significant variables to determine FDI in Mexico which is supported by literatures.

Suggested Citation

  • Parajuli, Shanta & Kennedy, P. Lynn, 2010. "The Exchange Rate and Inward Foreign Direct Investment in Mexico," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56459, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea10:56459
    DOI: 10.22004/ag.econ.56459
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    References listed on IDEAS

    as
    1. Andreas Waldkirch, 2010. "The Effects of Foreign Direct Investment in Mexico since NAFTA," The World Economy, Wiley Blackwell, vol. 33(5), pages 710-745, May.
    2. Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-494, November.
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    Cited by:

    1. Ghahroudi Mehdi Rasouli & Chong Li Choy, 2020. "The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran," Economics and Business, Sciendo, vol. 34(1), pages 15-34, February.
    2. Shah, Mumtaz Hussain & Zeb, Aisha, 2017. "Prudent Macro Management of the Economy and Inward FDI in ASEAN Member States," MPRA Paper 107249, University Library of Munich, Germany.

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