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Foreign direct investment in Mexico Determinants and its effect on income inequality

Author

Listed:
  • Juárez Rivera Carmen Guadalupe

    () (Universidad Politécnica de Tulancingo)

  • Ángeles Castro Gerardo

    () (Instituto Politécnico Nacional)

Abstract

By conducting panel data analysis across 32 federal entities in Mexico over the period 1994-2006, this paper studies the determinants of foreign direct investment (FDI) and its effect on income inequality within and between regions. We observe that the level of development and the size of the market have a direct relationship with FDI and therefore, they tend to increase the inequality gap between regions, but there is no evidence suggesting that it creates inequality within them.

Suggested Citation

  • Juárez Rivera Carmen Guadalupe & Ángeles Castro Gerardo, 2013. "Foreign direct investment in Mexico Determinants and its effect on income inequality," Contaduría y Administración, Accounting and Management, vol. 58(4), pages 201-222, octubre-d.
  • Handle: RePEc:nax:conyad:v:58:y:2013:i:4:p:201-222
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    File URL: http://www.cya.unam.mx/index.php/cya/article/view/120
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    References listed on IDEAS

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    5. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, pages 53-82.
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    7. Markusen, James R & Maskus, Keith E, 2002. "Discriminating among Alternative Theories of the Multinational Enterprise," Review of International Economics, Wiley Blackwell, vol. 10(4), pages 694-707, November.
    8. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, pages 371-393.
    9. repec:rdg:wpaper:em-dp2009-02 is not listed on IDEAS
    10. Alyson C. Ma, 2006. "Geographical Location of Foreign Direct Investment and Wage Inequality in China," The World Economy, Wiley Blackwell, vol. 29(8), pages 1031-1055, August.
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