Foreign Direct Investment and Employment Growth in the States of Mexico: Competitiveness and Social Progress

Alfonso Mendoza-Velázquez, Alejandro Rondero-Garcia and Luis David Conde-Cortés
Authors registered in the RePEc Author Service: Alfonso Mendoza-Velázquez ()

International Regional Science Review, 2021, vol. 44, issue 6, 709-730

Abstract: Employment growth is a desirable outcome of Foreign Direct Investment (FDI) and the economic performance of regions. However, the evidence available for Mexico is inconclusive. This study aims to contribute to the literature by assessing the dynamic relation between FDI and employment in the states of Mexico, and investigating the conditioning role of social progress, local public investment and competitiveness. We employ Impulse Response Functions and variance decomposition, derived from a Panel Vector Autoregressive (PVAR) model. The results provide evidence on the nexus between employment growth and the different types of FDI. We confirm the dynamic interrelation is, at best, weak.

Keywords: competitiveness; social progress; foreign direct investment; regional employment; local public investment (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:inrsre:v:44:y:2021:i:6:p:709-730

DOI: 10.1177/0160017620979665

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