Domestic Reform, Trade and Investment Liberalisation, Financial Crisis, and Foreign Direct Investment into Mexico

Graham, Edward M.; Wada, Erika

doi:10.1111/1467-9701.00303

Cited by 44 publications

(18 citation statements)

References 10 publications

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“…8 Beyond the NAFTA agreement, the Mexican government has subscribed to several bilateral foreign investment agreements, mainly with European or Latin American countries, in order to promote foreign investment and to diversify the origin of FDI. Mexico has bilateral investment treaties with Spain (1997), Switzerland (1998), Argentina (1998), the Netherlands (2000) The main motive for foreign investors to locate operations in Mexico is to take advantage of Mexico's location in order to serve the whole North American market rather than to serve the domestic market by itself (Agosin and Prieto, 1993;Twomey, 1996;Graham and Wada, 2000;and Sargent and Matthews, 2001). The cheap labour in Mexico is another determinant that attracts US FDI flows to the country Love and Lage-Hidalgo, 2000).…”

Section: A Fdi Liberalisationmentioning

confidence: 99%

Foreign Direct Investment, Exports and Imports in Mexico

Pacheco‐López

2005

World Economy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper analyses the liberalisation of foreign direct investment (FDI) in Mexico since the late-1980s, and its relationships with exports and imports. Such a process has eased the access of multinational corporations (MNCs) to the country, which has promoted exports. However, it has also resulted in a higher import content and the displacement of local firms, which has limited Mexico's economic development through the balance of payments constraint. The analysis is supported by the existence of linkages -bidirectional Granger causality-between exports, imports and FDI.JEL Classification: F14, F21, F23, O1.

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Section: A Fdi Liberalisationmentioning

confidence: 99%

Foreign Direct Investment, Exports and Imports in Mexico

Pacheco‐López

2005

World Economy

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“…Also, in most cases it is not so much RIAs but policies designed to stabilize markets and remove distortions which attract FDI. Increased FDI into Mexico following the formation of NAFTA, for instance, is attributed to Mexico's liberalization policies and not so much to Mexico's membership of NAFTA (Graham and Wada, 2000;Krueger, 2000). Market enhancement may be an important determinant of FDI, but it does not follow that an RIA necessarily results in the sort of market enhancement e¡ect which attracts FDI.…”

Section: á Determinantsmentioning

confidence: 99%

Regional Integration Agreements and Foreign Direct Investment: Theory and Preliminary Evidence

Balasubramanyam

Sapsford

Griffiths

2002

The Manchester School

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In this paper we investigate the e¡ects which economic integration exerts upon the magnitude and character of foreign direct investment (FDI) £ows. Drawing upon the existing literature on trade £ows we investigate the impact of regional integration agreements (RIAs) on FDI £ows and analyse their welfare implications. An empirical investigation of some 381 bilateral FDI £ows in 1995 is presented, the results of which suggest, in broad terms, that it is not the presence of RIAs that determines the magnitude and direction of bilateral FDI £ows but rather the economic characteristics of both the investing and the host country.

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“…In this sense, studies on the relationship of the Asian crisis (1997) and the Mexican crisis (1994) to foreign investment showed an FDI behavior that was more stable than other types of investment, such as portfolio (Athukorala, 2003;Lougani & Razin, 2001;Lipsey, 2001;Krugman, 2000;Graham & Wada, 2000).…”

Section: Background: Financial Crises and Their Relations With Fdimentioning

confidence: 99%

FDI and the Subprime Crisis: An Analysis for Asian and Latin American Countries

Castro¹,

Campos²

2017

IBR

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In recent decades, the inflows and stocks of foreign direct investment (FDI) have been heading increasingly towards developing countries intensifying the dynamics of international business. However, in 2008 the international financial crisis hit the world economy, decreasing FDI levels on a global scale. In this context, the purpose of this study is to evaluate the impact of the international financial crisis on FDI in Asian and Latin American countries, and to accomplish that, an analytical model was estimated by using dynamic panel procedures. Among the results, it was observed that the 2008 crisis had a negative impact on the multinational companies affecting the FDI stocks in the countries under consideration. However, the impact on the two regions differed, as the reduction in FDI stocks in Asia was greater than that in Latin American countries. In addition, the extension of the crisis, after 2008, was favorable to the growth of FDI in both regions.

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Domestic Reform, Trade and Investment Liberalisation, Financial Crisis, and Foreign Direct Investment into Mexico

Cited by 44 publications

References 10 publications

Foreign Direct Investment, Exports and Imports in Mexico

Foreign Direct Investment, Exports and Imports in Mexico

Regional Integration Agreements and Foreign Direct Investment: Theory and Preliminary Evidence

FDI and the Subprime Crisis: An Analysis for Asian and Latin American Countries

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