Arbeitspapier

FDI in Mexico: An empirical assessment of employment effects

We raise the question whether foreign direct investment (FDI) has contributed to employment generation in Mexico and, thereby, helped overcome the country's pressing labor market problems. The analysis draws on highly disaggregated FDI and employment data covering almost 200 manufacturing industries. We estimate dynamic labor demand functions for blue and white collar workers, including both FDI and its interaction with major industry characteristics. By employing the GMM estimator suggested by Arellano and Bond, we account for the relatively short time dimension of our panel (1994-2006). It turns out that FDI has a significantly positive, though quantitatively modest impact on manufacturing employment in Mexico. Moreover, we find no evidence supporting the widely held view that FDI adds to white collar employment in the first place. However, the positive effect on blue collar employment diminishes with increasing skill intensity of manufacturing industries.

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1328

Klassifikation
Wirtschaft
Multinational Firms; International Business
Labor Demand
Thema
Employment
Blue and white collar workers
Manufacturing sector
Mexico
Foreign direct investment
Direktinvestition
Industrielle Beschäftigung
Beschäftigungseffekt
Qualifikation
Schätzung
Mexiko

Ereignis
Geistige Schöpfung
(wer)
Nunnenkamp, Peter
Bremont, José Eduardo Alatorre
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2007

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Nunnenkamp, Peter
  • Bremont, José Eduardo Alatorre
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2007

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