Foreign Direct Investment in Mexico since the Approval of
AbstractCross-country panel data are used to assess the effect of free-trade agreements on flows of foreign direct investment ( fdi ). Free-trade agreements are found to have a significant positive effect on fdi flows, and free-trade agreements are found to matter more for the smaller members of the agreement. For example, the North American Free-Trade Agreement's ( nafta ) effect on fdi flows into Mexico is much larger than its effect on flows into the United States. These cross-country results are used to assess nafta 's effect on fdi flows into Mexico. After controlling for a set of other factors--such as an increase in worldwide fdi flows--the trade agreement is found to generate fdi flows nearly 60 percent higher than they would have been without the agreement. Copyright 2005, Oxford University Press.
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Bibliographic InfoArticle provided by World Bank Group in its journal The World Bank Economic Review.
Volume (Year): 19 (2005)
Issue (Month): 3 ()
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- Beata Javorcik & Wolfgang Keller & James Tybout, 2008.
"Openness and Industrial Response in a Wal-Mart World: A Case Study of Mexican Soaps, Detergents and Surfactant Producers,"
The World Economy,
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- Tekin-Koru, Ayca & Waldkirch, Andreas, 2007. "North American Integration and the Location of Foreign Direct Investment," MPRA Paper 5212, University Library of Munich, Germany.
- Jacob A. Jordaan, 2012. "Agglomeration and the location choice of foreign direct investment: new evidence from manufacturing FDI in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(1), pages 61-97.
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