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Regional economic integration and foreign direct investment: The case of NAFTA

Author

Listed:
  • Dorothee J. Feils

    (University of Alberta)

  • Manzur Rahman

    (University of San Diego)

Abstract

Abstract and Key Results We examine the impact of NAFTA on FDI into the region and the individual member countries. The literature on FDI and regional economic integration suggests that the implementation of NAFTA makes the entire area a more desirable investment location. However, insofar as individual member countries are concerned, the a priori effects are not necessarily unambiguously positive. We find that the implementation of NAFTA had a generally positive effect on inward FDI into the entire region, with the benefits accruing only to the United States and Canada.

Suggested Citation

  • Dorothee J. Feils & Manzur Rahman, 2008. "Regional economic integration and foreign direct investment: The case of NAFTA," Management International Review, Springer, vol. 48(2), pages 147-163, April.
    • Handle: RePEc:spr:manint:v:48:y:2008:i:2:d:10.1007_s11575-008-0009-9
    DOI: 10.1007/s11575-008-0009-9
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    2. Dirk Ulrich Gilbert & Patrick Heinecke, 2014. "Success Factors of Regional Strategies for Multinational Corporations: Exploring the Appropriate Degree of Regional Management Autonomy and Regional Product/Service Adaptation," Management International Review, Springer, vol. 54(5), pages 615-651, October.
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    4. John C. Anyanwu, 2012. "Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 425-462, November.
    5. Fofana Mory Fodé, 2014. "The Influence of Measures of Economic Freedom on FDI: A Comparison of Western Europe and Sub-Saharan Africa," Global Economy Journal, De Gruyter, vol. 14(3-4), pages 1-26, October.
    6. Li, Qiaomin & Scollay, Robert & Maani, Sholeh, 2016. "Effects on China and ASEAN of the ASEAN-China FTA: The FDI perspective," Journal of Asian Economics, Elsevier, vol. 44(C), pages 1-19.
    7. Salucknai Outtanasith & Khaysy Srithilat, 2022. "The Impact of AFTA on Trade Openness, and Foreign Direct Investment: The Empirical Evidence from Lao PDR," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 142-152.
    8. Aruna Gounder & Rod Falvey & Gulasekaran Rajaguru, 2019. "The Effects of Preferential Trade Agreements on Foreign Direct Investment: Evidence from the African Caribbean Pacific Region," Open Economies Review, Springer, vol. 30(4), pages 695-717, September.
    9. John Anyanwu, 2011. "Working Paper 136 - Determinants of Foreign Direct Investment Inflows to Africa, 1980-2007," Working Paper Series 327, African Development Bank.
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    11. Qingshan Ma & Yuanmeng Zhang & Kexin Yang & Lingyun He, 2021. "Have China’s Pilot Free Trade Zones Improved Green Total Factor Productivity?," IJERPH, MDPI, vol. 18(21), pages 1-20, November.

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