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Foreign Direct Investment, Exports and Imports in Mexico

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  • Penélope Pacheco-López

Abstract

This paper analyses the liberalisation of foreign direct investment (FDI) in Mexico since the late 1980s, and its relationships with exports and imports. Such a process has eased the access of multinational corporations (MNCs) to the country, which has promoted exports. However, it has also resulted in a higher import content and the displacement of local firms, which has limited Mexico's economic development through the balance of payments constraint. The analysis is supported by the existence of linkages - bidirectional Granger causality - between exports, imports and FDI. Copyright Blackwell Publishing Ltd 2005.

Suggested Citation

  • Penélope Pacheco-López, 2005. "Foreign Direct Investment, Exports and Imports in Mexico," The World Economy, Wiley Blackwell, vol. 28(8), pages 1157-1172, August.
  • Handle: RePEc:bla:worlde:v:28:y:2005:i:8:p:1157-1172
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. repec:rej:journl:v:19:y:2016:i:62:p:95-118 is not listed on IDEAS
    2. Koi Nyen Wong & Tuck Cheong Tang & Dietrich Fausten, 2009. "Foreign Direct Investment and Services Trade: Evidence from Malaysia and Singapore," Global Economic Review, Taylor & Francis Journals, vol. 38(3), pages 265-276.
    3. Koi Nyen Wong & Tuck Cheong Tang, 2009. "New Evidence on the Causal Linkages Between Foreign Direct Investment,Exports and Imports in Malaysia," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 20-25, January.
    4. Jacob A. Jordaan, 2008. "State Characteristics and the Locational Choice of Foreign Direct Investment: Evidence from Regional FDI in Mexico 1989-2006," Growth and Change, Wiley Blackwell, vol. 39(3), pages 389-413.
    5. Jacob Jordaan & Eduardo Rodriguez-Oreggia, 2012. "Regional growth in Mexico under trade liberalisation: how important are agglomeration and FDI?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 179-202, February.
    6. Thi Anh-Dao Tran & Thi Thanh Binh Dinh, 2014. "FDI inflows and trade imbalances: evidence from developing Asia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 147-169, June.
    7. repec:rej:journl:v:19:y:2016:i:61:p:47-70 is not listed on IDEAS
    8. Koi Nyen Wong & Tuck Cheong Tang, 2007. "Does Exchange Rate Variability Affect The Causation Between Foreign Direct Investment And Electronics Exports? An Empirical Test Using Malaysian Data," Monash Economics Working Papers 12-07, Monash University, Department of Economics.
    9. 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.
    10. repec:spr:manint:v:49:y:2009:i:6:d:10.1007_s11575-009-0016-5 is not listed on IDEAS
    11. Jayanthakumaran, Kankesu & Lee, Shao-Wei, 2007. "An initial push for successful transition from import substitution to export-orientation in Taiwan and China: The FDI-led hypothesis," Economics Working Papers wp07-03, School of Economics, University of Wollongong, NSW, Australia.
    12. 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.
    13. 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.
    14. repec:ebl:ecbull:v:6:y:2007:i:14:p:1-8 is not listed on IDEAS
    15. Stefanescu, Răzvan & Dumitriu, Ramona & Nistor, Costel, 2010. "Impactul investitiilor straine directe asupra exporturilor din Romania
      [Impact of the foreign direct investment on Romanian exports]
      ," MPRA Paper 36563, University Library of Munich, Germany, revised 09 Feb 2012.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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