Foreign direct investment and youth educational outcomes in Mexican municipalities

Ibarra-Olivo, J. Eduardo

doi:10.1016/j.econedurev.2021.102123

Cited by 9 publications

(10 citation statements)

References 51 publications

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“…Additionally, offshoring strategies implemented by firms located in developed countries allow the creation of new jobs (SDG 8), often also for women due to their specific skills which are needed for production activities (SDG 5). They also encourage educational policies (SDG 4; Ibarra‐Olivo, 2021; Moazzem & Radia, 2018; Solotaroff et al, 2019). It has been acknowledged that multinationals often implement more gender‐oriented policies when operating abroad (Barrientos, 2019; Monge‐González et al, 2021; Neumayer & de Soysa, 2011).…”

Section: Impacts Of Backshoring Strategies On Sdgs In Home and Host C...mentioning

confidence: 99%

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Di Stefano,

Fratocchi,

Martínez‐Mora

et al. 2023

Sustainable Development

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After decades of offshoring their manufacturing activities, an increasing number of companies are revising their location strategies and implementing reshoring decisions, including backshoring (relocation in the home country) and nearshoring (relocation in the home region) alternatives. It has been recognized that reshoring strategies are consistent with the sustainable production approach, since they allow companies to produce goods in a manner that is socially beneficial, economically viable, and environmentally less harmful over the whole life cycle of those goods. Additionally, there are early indications that reshoring can also promote and support sustainable consumption approaches. Consequently, reshoring has a wide range of impacts in both the home and the host countries, also in terms of the Sustainable Development Goals (SDGs). However, this topic has received little attention in the extant reshoring literature. This paper seeks to contribute to the discussion by adopting a two‐step approach. Initially, we analyze the very few contributions available on this topic; then, we identify and discuss which of the 17 SDGs are impacted by reshoring decisions at both the home and the host country level. It emerges that reshoring decisions have several and differentiated impacts in terms of SDGs. In general, these impacts are positive for home countries and negative for host ones. For this reason, a trade‐off emerges when a single relocation decision is taken and implemented. Based on this evidence, implications for scholars, managers and policy makers are presented and discussed.

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Section: Impacts Of Backshoring Strategies On Sdgs In Home and Host C...mentioning

confidence: 99%

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Di Stefano,

Fratocchi,

Martínez‐Mora

et al. 2023

Sustainable Development

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show abstract

“…The theoretical and empirical literature that relates human capital with FDI and globalization is growing. For example, Ibarra-Olivo [11] and Tsaurai [14] evaluated the impact of the FDI on the education of young people in the municipalities of Mexico and the BRICS countries, respectively. The authors highlighted the limitations of foreign investment to increase the human capital endowments of the young local population.…”

Section: Hypotheses 1 (H1)mentioning

confidence: 99%

“…This behavior is supported by the fact that developed countries have advantages at their technological level and even have better linguistic capital that facilitates the ability to absorb knowledge [19,26]. On the other hand, Ibarra-Olivo [11] determined that foreign direct investment inflows do not directly affect better educational levels due to the different wage premiums of qualified workers. Therefore, the advantages of FDI should be leveraged to achieve positive human capital outcomes in the short term and the long run.…”

Section: Literature Reviewmentioning

confidence: 99%

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Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

et al. 2022

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Human capital formation in developing countries is a policy instrument to promote economic progress. In recent decades, FDI can act as a mechanism for transmitting human capital in the context of highly globalized countries. Extensive literature indicates that the formation of human capital is one of the most effective mechanisms for promoting structural change in countries. This research examines the causal link between FDI flows, globalization, and knowledge. This relationship is moderated by the index of electoral democracy, employment in agriculture, rent from natural resources, export diversification, and fertility. We employ a set of threshold regressions based on the idea that FDI levels will be significant and permanent as long as FDI transmits knowledge to recipient countries from a substantial level of FDI. The results show a threshold effect in the electoral democracy index and foreign direct investment at the global level and high- and upper-middle-income countries. In addition, we found a threshold effect for the electoral democracy index in the East Asia Pacific regions and the Middle East and North African countries. There is a threshold effect in East Asia, the Pacific, and Latin America in FDI. Based on the results, policymakers should promote FDI and electoral democracy flows above the threshold to encourage the transfer of human capital in the countries analyzed.

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“…What is more, maquiladoras in manufacturing and call centres in business services rely more on low‐skilled labour than on highly skilled workers (Waldkirch, 2010). Hence, the higher wages for the unskilled may offset the returns to higher education, pushing vulnerable youth out of school and limiting overall educational attainment (Asali et al, 2016; Atkin, 2016; Ibarra‐Olivo, 2021). The results strongly suggest that FDI in different industries provides different incentives to invest in education.…”

Section: Final Remarksmentioning

confidence: 99%

FDI and the growing wage gap in Mexican municipalities

Ibarra-Olivo

Rodríguez‐Pose

2022

Papers in Regional Science

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Inward foreign direct investment (FDI) has generally been linked to higher wages, but evidence remains sparse on the overall effects of FDI on average wages, the wage gap between skilled and unskilled labour, and inter-industry heterogeneity. We address these issues for Mexican municipalities and industries for a period of increasing FDI and sectoral change that saw growing wage inequality. By combining two non-experimental techniques we find that FDI in Mexico was associated with higher wages, mostly for skilled workers-but also for unskilled ones-and a widening gap between them. Effects vary both between and within industries depending on location, and they either wax or wane when the initial or incremental effects are considered.

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Foreign direct investment and youth educational outcomes in Mexican municipalities

Cited by 9 publications

References 51 publications

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Heterogeneity in the Causal Link between FDI, Globalization and Human Capital: New Empirical Evidence Using Threshold Regressions

FDI and the growing wage gap in Mexican municipalities

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