Contribution of foreign direct investment to Mexico's economic growth during the neoliberal period

José Romero ()
Additional contact information
José Romero: El Colegio de México

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: This paper analyses the impact of foreign direct investment on labor productivity for the period in which neoliberal policies were applied (1983-2018). It proposes a production function with labor and three types of capital: private national, foreign and government. From the production function in levels we derived a relationship concerning growth rates, and since the variables in levels are I(1) and co-integrated, a VEC model was used. Our estimate finds a long run joint positive causality for the three types of capital on labor productivity, but in the short run, the growth of foreign capital does not cause an increase in labor productivity. This is a critical issue, since Mexican economic policy, throughout its entire political regime, has been based on the assumption that foreign direct investment (FDI) is the primary source of growth of the Mexican economy.

Keywords: Mexican economy; economic growth; foreign direct investment; FDI (search for similar items in EconPapers)
JEL-codes: E22 F43 O11 O54 (search for similar items in EconPapers)
Date: 2019-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cee.colmex.mx/dts/2019/DT-2019-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2019-01

Access Statistics for this paper

More papers in Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos Contact information at EDIRC.
Bibliographic data for series maintained by Ximena Varela ().