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Externalities from foreign direct investment in the Mexican retailing sector

Author

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  • Cédric Durand

    () (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique, CEMI - Centre d'Études des Modes d'Industrialisation - EHESS - École des hautes études en sciences sociales)

Abstract

This contribution to the discussion on the impact of foreign direct investment in developing countries is based on an empirical study of the consequences of transnational corporations' presence in the Mexican retailing sector, particularly Wal-Mart. First, it is shown that the arrival of foreign firms accelerates the modernisation but has a negative impact on local firms' performance as well as local worker remuneration as a result of the growing competitive pressure in the sector. Second, the changes that occurred in supply chain governance and the tremendous increase of imports initiated by Wal-Mart are described, and some probable implications for local suppliers are suggested.

Suggested Citation

  • Cédric Durand, 2007. "Externalities from foreign direct investment in the Mexican retailing sector," Post-Print hal-00166844, HAL.
  • Handle: RePEc:hal:journl:hal-00166844
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00166844
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    Cited by:

    1. Raff, Horst & Schmitt, Nicolas, 2015. "Retailing and international trade: A survey of the literature," Economics Working Papers 2015-02, Christian-Albrechts-University of Kiel, Department of Economics.
    2. Javorcik, Beata S. & Li, Yue, 2013. "Do the biggest aisles serve a brighter future? Global retail chains and their implications for Romania," Journal of International Economics, Elsevier, vol. 90(2), pages 348-363.
    3. Jonathan Matusitz & Elizabeth Minei, 2011. "Cultural Adaptation of an MNC in Mexico: A Success Story," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 418-429, December.
    4. Eleni A Kaditi, 2011. "Market Dynamics in Supply Chains: The Impact of Globalisation and Consolidation on Food Companie's Mark-ups," Working Papers id:4430, eSocialSciences.
    5. Emlinger, Charlotte & Poncet, Sandra, 2018. "With a little help from my friends: Multinational retailers and China's consumer market penetration," Journal of International Economics, Elsevier, vol. 112(C), pages 1-12.
    6. repec:dgr:rugggd:gd-105 is not listed on IDEAS
    7. Susan Chen & Raymond J. G. M. Florax & Samantha Snyder & Christopher C. Miller, 2010. "Obesity and Access to Chain Grocers," Economic Geography, Taylor & Francis Journals, vol. 86(4), pages 431-452, October.
    8. Juan A. Bogliaccini & Patrick J. W. Egan, 2017. "Foreign direct investment and inequality in developing countries: Does sector matter?," Economics and Politics, Wiley Blackwell, vol. 29(3), pages 209-236, November.
    9. Iacovone, Leonardo & Javorcik, Beata & Keller, Wolfgang & Tybout, James, 2015. "Supplier responses to Walmart's invasion in Mexico," Journal of International Economics, Elsevier, vol. 95(1), pages 1-15.
    10. Varela, Mauricio J., 2018. "The costs of growth: Accelerated growth and crowd-out in the Mexican supermarket industry," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 1-52.
    11. Nir Kshetri & Ralf Bebenroth, 2011. "Sources of Global Heterogeneity in Retail Spending," Discussion Paper Series DP2011-03, Research Institute for Economics & Business Administration, Kobe University.
    12. Eleni A.Kaditi, 2011. "Market Dynamics in Sypply Chains: The Impact of Globalization and Consolidation on food companies' mark-ups," LICOS Discussion Papers 27311, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    13. Vries, Gaaitzen J. de, 2008. "Did Liberalization Start A Retail Revolution In Brazil?," GGDC Research Memorandum GD-105, Groningen Growth and Development Centre, University of Groningen.
    14. Singh, Sukhpal, 2016. "Understanding the Role and Implications of FDI in Agri-Food Markets from a Value Chain Perspective: Case of Multi-Brand Retail Trade (MBRT) FDI in India," Conference Papers 261299, Indian Society of Agricultural Economics.
    15. Kaditi, Eleni A., 2011. "Market Dynamics in Supply Chains: The Impact of Globalisation and Consolidation on Food Companies' Mark-Ups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114452, European Association of Agricultural Economists.

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