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

Octavio Escobar

The Journal of International Trade & Economic Development, 2013, vol. 22, issue 7, 993-1012

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.

Date: 2013
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DOI: 10.1080/09638199.2011.624190

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The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

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