The location pattern of FDI in Mexico after NAFTA

Konferenzbeitrag

This paper studies the location pattern of foreign direct investment (FDI) in Mexico for the period 1994-2004. An empirical gravity type model is specified based on recent FDI theories and empirical papers. It is then estimated using state-level data by FDI source country. An extended gravity-type model with elements of multinationals theory is specified, and a methodology is introduced to take into account the zero-flows observations. Results suggest that not taking into account these observations lead to biased results. In addition, they suggest the influence of geographical location and wages as major determinants on the FDI distribution across Mexican states.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: 50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden

Classification and Topics

• Classification: Wirtschaft
• Subject: FDI ; Mexico ; gravity models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Escobar, Octavio
• Event: Veröffentlichung
• (who): European Regional Science Association (ERSA)
• (where): Louvain-la-Neuve
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/118997
• Last update: 10.03.2025, 11:45 AM CET