Foreign Direct Investment (FDI) Determinants and Spatial Spillovers Across Mexico's States

28 Pages Posted: 10 Jul 2013

Date Written: February 20, 2012

Abstract

This paper 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.

Keywords: FDI, Mexico, NAFTA, Spatial econometrics

JEL Classification: C29, F21, F23, O54

Suggested Citation

Escobar Gamboa, Octavio Romano, Foreign Direct Investment (FDI) Determinants and Spatial Spillovers Across Mexico's States (February 20, 2012). Journal of International Trade and Economic Development, 2012. Available at SSRN: https://ssrn.com/abstract=2291426 or http://dx.doi.org/10.2139/ssrn.2291426

Octavio Romano Escobar Gamboa (Contact Author)

ESG Management School ( email )

25 rue Saint Ambroise
Paris, 75011
France

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