 Foreign direct investment, public investment and growth: evidence from the regions in Mexico, 2006-2015Alfonso Mendoza-Velázquez () and Luis David Conde Cortés () Estudios de Economia, 2019, vol. 46, issue 2, 191-225 Abstract: This paper examines the dynamic association between foreign direct investment (FDI), public investment of local governments (IPUB) and economic growth for the 32 states in Mexico grouped by region and level of competitiveness for the 2006-2015 period. In particular, we examine the crowding-in and crowdingout effects of the two types of investments, as well as their impact on economic growth. We employ a panel data vector autorregression (VARP) model from which we obtain evidence indicating that IPUB shocks have a negative impact on the response of IED and also that IPUB responds positively, but weakly to FDI. We also find a negative and significant response of regional GDP growth to IPUB shocks, particularly in the north of Mexico. Finally, we find that shocks to FDI do not encourage GDP growth and that states in the south even experience negative rates of growth of per capita GDP. Keywords: Inversión extranjera directa; inversión pública local; crecimiento regional; crowding in; crowding out (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:46:y:2019:i:1:p:191-225 Access Statistics for this article Estudios de Economia is currently edited by Rómulo Chumacero More articles in Estudios de Economia from University of Chile, Department of Economics Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.