IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v32y2000i10p1259-1267.html
   My bibliography  Save this article

Analysing the determinants of US direct investment in Mexico

Author

Listed:
  • James Love
  • Francisco Lage-Hidalgo

Abstract

In this paper a simple model of foreign direct investment is developed and tested on investment flows from the USA to Mexico between 1967 and 1994 using cointegration analysis. Domestic demand and relative factor costs are found to influence direct investment flows, suggesting support for both the 'cheap labour' and 'market size' hypotheses. The short-run dynamics of the model indicate that exchange rate movements have an effect on the timing of the investment decision.

Suggested Citation

  • James Love & Francisco Lage-Hidalgo, 2000. "Analysing the determinants of US direct investment in Mexico," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1259-1267.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1259-1267
    DOI: 10.1080/000368400404416
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404416
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368400404416?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Gary Clyde Hufbauer & Jeffrey J. Schott, 1992. "North American Free Trade: Issues and Recommendations," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 71, January.
    Full references (including those not matched with items on IDEAS)

    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. Festus Ebo Turkson, 2012. "Trade Agreements and Bilateral Trade in Sub-Saharan Africa: Estimating the Trade Effects of the EU-ACP PTA and RTAs," Discussion Papers 12/07, University of Nottingham, CREDIT.
    2. Patricia Fernández-Kelly & Douglas S. Massey, 2007. "Borders for Whom? The Role of NAFTA in Mexico-U.S. Migration," The ANNALS of the American Academy of Political and Social Science, , vol. 610(1), pages 98-118, March.
    3. Castilho, Marta Reis, 2004. "Integração regional e conteúdo de trabalho do comércio exterior brasileiro," Oficina de la CEPAL en Brasilia (Estudios e Investigaciones) 37924, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Mr. Ayhan Kose & Mr. Roberto Cardarelli, 2004. "Economic Integration, Business Cycle, and Productivity in North America," IMF Working Papers 2004/138, International Monetary Fund.
    5. Michelle Casario, 1996. "North American Free Trade Agreement Bilateral Trade Effects," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 36-47, January.
    6. Capaldo, Jeronim, 2014. "Trade Hallucination: Risks of Trade Facilitation and Suggestions for Implementation," Working Papers 179115, Tufts University, Global Development and Environment Institute.
    7. Thomas Fullerton & W. Sawyer & Richard Sprinkle, 1999. "Latin American trade elasticities," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 23(2), pages 143-156, June.
    8. Langhammer, Rolf J., 1992. "The NAFTA: another futile trade area (AFTA) or a serious approach towards regionalism?," Kiel Discussion Papers 195, Kiel Institute for the World Economy (IfW Kiel).
    9. Richard L. Gordon, 1993. "North American Free Trade: Another Challenge to Coal," The Energy Journal, , vol. 14(3), pages 153-170, July.
    10. Arthur Silvers, 2000. "Limited Linkage, Demand Shifts and the Transboundary Transmission of Regional Growth," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 239-251.
    11. M. Ayhan Kose & Guy M. Meredith & Christopher M. Towe, 2005. "How Has NAFTA Affected the Mexican Economy? Review and Evidence," Springer Books, in: Rolf J. Langhammer & Lúcio Vinhas Souza (ed.), Monetary Policy and Macroeconomic Stabilization in Latin America, pages 35-81, Springer.
    12. Martin, Philip L., 1996. "Trade and migration linkages: The case of NAFTA," Discussion Papers, Series II 317, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    13. Robert A. Blecker, 1996. "NAFTA, the Peso Crisis, and the Contradictions of the Mexican Economic Growth Strategy," SCEPA working paper series. 1996-04, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    14. Rod Falvey & Geoff Reed, 1998. "Economic effects of rules of origin," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(2), pages 209-229, June.
    15. Robert A. Blecker, 2009. "Comercio, Empleo y Distribución: Efectos de la Integración Regional y Global," Working Papers 2009-21, American University, Department of Economics.
    16. L M Benton, 1996. "The Greening of Free Trade? The Debate about the North American Free Trade Agreement (NAFTA) and the Environment," Environment and Planning A, , vol. 28(12), pages 2155-2177, December.
    17. Patrick J. Kehoe & Timothy J. Kehoe, 1994. "Capturing NAFTA's impact with applied general equilibrium models," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 18(Spr), pages 17-34.
    18. Richard A. McGowan & John F. Mahon, 2007. "U.S. Beer Flows & the Impact of NAFTA," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 5(1), pages 39-54, November.
    19. Mendoza, Jorge Eduardo, 2006. "Determinantes macroeconómicos regionales de la migración mexicana [Regional macroeconomic determinants of Mexican migration]," MPRA Paper 2860, University Library of Munich, Germany, revised 2006.
    20. Papastamkos Georgios, 2000. "Welthandelsordnung, regionale Teilordnungen und interregionale Klammerordnungen: Die handelspolitische Präsenz der EU in einer globalisierten und regionalisierten Weltwirtschaft," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 51(1), pages 457-478, January.

    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:applec:v:32:y:2000:i:10:p:1259-1267. 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/RAEC20 .

    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.