Location choice

Sweder van Wijnbergen and Anthony Venables

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Much of the excitement around the North American Free Trade Agreement (NAFTA) has been generated by anticipations of a strongly foreign investment response. Nevertheless, the plethora of applied papers about the NAFTA have all either ignored DFI or kept it exogenous. In this paper we provide support, with empirical underpinning, for the anticipation of a strong DFI response; however this support is qualified by the demonstration that no such DFI response will be forthcoming unless the NAFTA is used to drastically reform the agriculture and services sectors in Mexico.

JEL-codes: L81 (search for similar items in EconPapers)
Pages: 40 pages
Date: 1993-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://eprints.lse.ac.uk/2099/ Open access version. (application/pdf)

Related works:
Working Paper: Location Choice (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:2099

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