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Regional foreign participation and externalities: new empirical evidence from Mexican regions

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  • Jacob A Jordaan

Abstract

Recent empirical research on externalities from foreign direct investment (FDI) is engaged with the identification of externalities along the dimensions of industry and geographical space. In this paper I explore these externality dimensions in the context of estimating FDI externalities in regional Mexican manufacturing industries. The main findings indicate that the presence of FDI creates a variety of externality effects. Intraregional foreign participation creates negative intraindustry and positive interindustry externalities. Furthermore, the estimations identify negative intraindustry externalities across regions and positive spatial interindustry FDI externalities. In addition, the estimations identify three different regional characteristics that have a negative or positive effect on spatial externalities from FDI.

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Bibliographic Info

Article provided by Pion Ltd, London in its journal Environment and Planning A.

Volume (Year): 40 (2008)
Issue (Month): 12 (December)
Pages: 2948-2969

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Handle: RePEc:pio:envira:v:40:y:2008:i:12:p:2948-2969

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Web page: http://www.pion.co.uk

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Cited by:
  1. Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2010. "The Spatial Dimension in FDI Spillovers: Evidence at the Regional Level from Portugal," Working Papers Department of Economics, ISEG - School of Economics and Management, Department of Economics, University of Lisbon 2010/17, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  2. Andrés Rodríguez-Pose, 2010. "Trade and regional inequality," Working Papers, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales 2010-13, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  3. Ezcurra, Roberto & Rodríguez-Pose, Andrés, 2013. "Does economic globalization a ffect regional inequality? A cross-country analysis," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9557, C.E.P.R. Discussion Papers.
  4. Tomáš Havránek & Zuzana Iršová, 2011. "How to Stir Up FDI Spillovers: Evidence from a Large Meta-Analysis," Working Papers IES, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies 2011/34, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2011.
  5. Jordaan, Jacob A., 2008. "Intra- and Inter-industry Externalities from Foreign Direct Investment in the Mexican Manufacturing Sector: New Evidence from Mexican Regions," World Development, Elsevier, vol. 36(12), pages 2838-2854, December.
  6. Jordaan, Jacob A., 2011. "FDI, Local Sourcing, and Supportive Linkages with Domestic Suppliers: The Case of Monterrey, Mexico," World Development, Elsevier, vol. 39(4), pages 620-632, April.
  7. Tomas Havranek & Zuzana Irsova, 2012. "Survey Article: Publication Bias in the Literature on Foreign Direct Investment Spillovers," Journal of Development Studies, Taylor & Francis Journals, vol. 48(10), pages 1375-1396, October.
  8. Iršová, Zuzana & Havránek, Tomáš, 2013. "Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis," World Development, Elsevier, vol. 42(C), pages 1-15.

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