IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v22y2013i7p993-1012.html

Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states

Author

Listed:
  • Octavio Romano Escobar Gamboa

Abstract

This article studies the location pattern of foreign direct investment (FDI) in Mexico for the period 1994-2004. An empirical model is specified based on recent FDI theories. This model is estimated using state-level data and employing spatial econometric techniques. Results suggest that higher education levels and lower delinquency rates are important determinants to attract FDI. Results also suggest a relationship of complementarity between inbound FDI to the host state and inward FDI to its neighboring states.

Suggested Citation

  • Octavio Romano Escobar Gamboa, 2013. "Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(7), pages 993-1012, October.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:7:p:993-1012
    DOI: 10.1080/09638199.2011.624190
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2011.624190
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638199.2011.624190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
    2. Aaron Tornell & Frank Westermann & Lorenzo Martinez, 2004. "Nafta and Mexico Less-than-Steller Performance," UCLA Economics Working Papers 833, UCLA Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henning Mühlen & Octavio Escobar, 2020. "The role of FDI in structural change: Evidence from Mexico," The World Economy, Wiley Blackwell, vol. 43(3), pages 557-585, March.
    2. Sarker, Bibhuti & Serieux, John, 2023. "Multilevel determinants of FDI: A regional comparative analysis," Economic Systems, Elsevier, vol. 47(3).
    3. Víctor Hugo Torres Preciado & Mayrén Polanco Gaytán & Miguel A. Tinoco Zermeño, 2017. "Dynamic of foreign direct investment in the states of Mexico: An analysis of Markov's spatial chains," Contaduría y Administración, Accounting and Management, vol. 62(1), pages 163-183, Enero-Mar.
    4. Eric Evans Osei Opoku & Alex O. Acheampong & Janet Dzator & Nana Kwabena Kufuor, 2022. "Does environmental sustainability attract foreign investment? Evidence from developing countries," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3542-3573, November.
    5. Hong Hiep Hoang & Cong Minh Huynh & Nguyen Minh Huy Duong & Ngoc Hoe Chau, 2022. "Determinants of foreign direct investment in Southern Central Coast of Vietnam: a spatial econometric analysis," Economic Change and Restructuring, Springer, vol. 55(1), pages 285-310, February.
    6. Víctor Hugo Torres Preciado & Mayrén Polanco Gaytán & Miguel A. Tinoco Zermeño, 2017. "Dinámica de la inversión extranjera directa en los estados de México: un análisis de cadenas de Markov espaciales," Contaduría y Administración, Accounting and Management, vol. 62(1), pages 141-162, Enero-Mar.
    7. Lisha He, 2022. "Spatial Linkages in Chinese Service and Manufacturing Outward Fdi: Empirical Evidence From the United States," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 113(5), pages 450-468, December.
    8. Felipe J. Fonseca & Irving Llamosas-Rosas, 2019. "Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 265-284, April.
    9. Leo Guzmán-Anaya & María Guadalupe Lugo-Sánchez, 2023. "Determinantes de localización estatal de la inversión extranjera directa japonesa en la industria automotriz mexicana," Ensayos Revista de Economía, Universidad Autónoma de Nuevo León, vol. 42(2), pages 183-210, July.
    10. Llamosas-Rosas Irving & Fonseca Felipe J., 2018. "Determinants of FDI Attraction in the Manufacturing Sector in Mexico, 1999-2015," Working Papers 2018-07, Banco de México.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Escobar Gamboa, Octavio Romano, 2009. "IDE entrants, exportations et productivité manufacturière : les différentes performances des régions mexicaines," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/3850 edited by Guillochon, Bernard.
    2. Octavio Escobar, 2011. "The location pattern of FDI in Mexico after NAFTA," ERSA conference papers ersa10p804, European Regional Science Association.
    3. repec:dau:papers:123456789/10605 is not listed on IDEAS
    4. Peter Egger & Michael Pfaffermayr, 2004. "Foreign Direct Investment and European Integration in the 1990s," The World Economy, Wiley Blackwell, vol. 27(1), pages 99-110, January.
    5. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    6. Badinger, Harald & Egger, Peter, 2013. "Spacey Parents and Spacey Hosts in FDI," Department of Economics Working Paper Series 154, WU Vienna University of Economics and Business.
    7. Nico van Leeuwen & Arjan Lejour, 2006. "Bilateral FDI Stocks by sector," CPB Memorandum 164, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Jaewon Jung, 2023. "Multinational Firms and Economic Integration: The Role of Global Uncertainty," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
    9. Qing Liu & Larry D. Qiu & Zhigang Li, 2016. "Foreign Acquisitions in China and Multinationals’ Global Market Strategy," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 87-100, February.
    10. Walid Hejazi, 2005. "Are Regional Concentrations of OECD Exports and Outward FDI Consistent with Gravity?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 423-436, December.
    11. Holger Görg & Michael Henry & Eric Strobl & Frank Walsh, 2009. "Multinational companies, backward linkages, and labour demand elasticities," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 332-348, February.
    12. Andrzej Cieślik & Oleg Gurshev, 2021. "Factor Endowments, Economic Integration, Round-Tripping, and Inward FDI: Evidence from the Baltic Economies," JRFM, MDPI, vol. 14(8), pages 1-26, July.
    13. Chakraborty, Debashis & Mukherjee, Jaydeep & Lee, Jaewook, 2016. "Do FDI Inflows influence Merchandise Exports? Causality Analysis on India over 1991-2016," MPRA Paper 74851, University Library of Munich, Germany.
    14. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    15. Markusen, James & Gervais, Antoine & Venables, Anthony, 2021. "Urban specialisation; from sectoral to functional," CEPR Discussion Papers 15677, Centre for Economic Policy Research.
    16. Jeffrey Bergstrand & Jordi Paniagua, 2026. "Do Deep Trade Agreements’ Provisions Actually Increase – or Decrease – Trade and/or FDI?," Working Papers 2606, Department of Applied Economics II, Universidad de Valencia.
    17. Kenji Fujiwara, 2015. "Trade and FDI Liberalization in Multiple Oligopolies," Discussion Paper Series 131, School of Economics, Kwansei Gakuin University, revised Jul 2015.
    18. Békés, Gábor & Hornok, Cecília & Muraközy, Balázs, 2016. "Globalization and the markups of European firms," Kiel Working Papers 2044, Kiel Institute for the World Economy.
    19. Petroulas, Pavlos, 2007. "The effect of the euro on foreign direct investment," European Economic Review, Elsevier, vol. 51(6), pages 1468-1491, August.
    20. Kimura, Hidemi & Todo, Yasuyuki, 2010. "Is Foreign Aid a Vanguard of Foreign Direct Investment? A Gravity-Equation Approach," World Development, Elsevier, vol. 38(4), pages 482-497, April.
    21. Aaron Tornell & Frank Westermann & Lorenza Martinez, 2003. "Liberalization, Growth, and Financial Crises: Lessons from Mexico and the Developing World," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 1-112.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:22:y:2013:i:7:p:993-1012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.