Violence in Mexico and its effects on labor productivity

Cabral, René; Mollick, André Varella; Saucedo, Eduardo

doi:10.1007/s00168-016-0741-1

Cited by 21 publications

(15 citation statements)

References 31 publications

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“…New FDI refers to investment that comes exclusively into the country to expand production and is expected to have a direct impact on employment. Vergara et al (2015) and Cabral et al (2016); both papers focus on the analysis of new FDI inflows among all FDI categories, which is more related with employment. The main independent variable is available in US dollars, so FDI is transformed to real pesos (2013 = 100) by considering the nominal exchange rate for the period, and then a deflator is built based on the 2013 consumer price index from INEGI.…”

Section: Datamentioning

confidence: 99%

“…The regression model estimation also includes alternative wage as a control variable. In terms of the former, the approach of Cabral et al (2016) is applied in considering state-level real wages of employees in the formal sector (2013 = 100). Regarding the latter, it is possible to estimate a spatial weighted average of wages except for the state i based on the distance that exists between the government statehouse i and government statehouse in the remaining states.…”

Section: Datamentioning

confidence: 99%

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The effect of FDI on low and high-skilled employment and wages in Mexico: a study for the manufacture and service sectors

Saucedo

Ozuna

Zamora³

2020

J Labour Market Res

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This study analyzes the effect of Foreign Direct Investment (FDI) inflows on the employment and wages of low-and high-skilled employees in the manufacture and service sectors in Mexico. The study implements a quarterly panel dataset covering the 32 Mexican states from 2005 to 2018. The econometric model is estimated throughout Fixed-Effects (FE) and Panel Corrected Standard Errors (PCSE). Employment results indicate that an increase of FDI inflows into the manufacture sector creates a positive effect in low-and high-skilled employment. In the case of service sector, results are inconclusive across models for both categories of employment. In the case of wages, it is found that FDI inflows by the manufacture sector increase marginally in low-skilled wages and no statistical effect is captured in high-skilled wages. Lastly, in service sector, results indicate the effect of FDI inflows are inconclusive in the case of lowskilled and high-skilled wages.

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Section: Datamentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

The effect of FDI on low and high-skilled employment and wages in Mexico: a study for the manufacture and service sectors

Saucedo

Ozuna

Zamora³

2020

J Labour Market Res

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“…Several studies have looked at economic variables and how the presence of organized crime affects them. For instance, Cabral, Mollick, and Saucedo (2016) report that a rise in crime has negative effects on labor productivity. Ashby and Ramos (2013) find that organized crime in Mexico deters FDI in financial services, commerce, and agriculture.…”

Section: Literature Related To Economic Effects Of Drug Violencementioning

confidence: 99%

Assessing the effects of the Mexican Drug War on economic growth: An empirical analysis

Bel¹,

Holst²

2018

Southern Economic Journal

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Mexican President Felipe Calderón took office in December 2006. From the outset, his government deployed an aggressive security policy to fight drug trafficking organizations in what became known as the “Mexican Drug War.” The policy earned considerable criticism since a heavy number of unintended casualties resulted from the frontal assault waged against the drug cartels. In this article, we evaluate the effects of the Mexican Drug War on Mexican states’ economic growth. To do so, we study the effects of the rise in the homicide rate and changes in a state‐level approximation of the military budget on economic growth. Using dynamic panel data econometrics, we find that while the growth in the number of homicides had negative and significant effects on state GDP growth, state military expenditures aimed at fighting drug trafficking had a positive and significant effect on the per capita economic growth rate.

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“… Alternatively, one could model the effects of assaults, drug crimes, and property damage (Cabral, Mollick, & Saucedo, ). However, as Lederman, Loayza, and Menendez () note, while the homicide rate is an imperfect proxy, it is more accurate than data for other crimes (see Azaola & Bergman, as cited in Pan et al, ). …”

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confidence: 99%

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

Tuman

Erlingsson

2019

Growth and Change

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This study examines the subnational flow in foreign direct investment (FDI) to Mexican states, with a focus on the finished vehicle industry. Although prior studies have examined subnational FDI in Mexico, research on the automobile sector has been scant. Utilizing a framework associated with the theory of asset specificity, we examine the influence of human capital and labor conditions, infrastructure, subnational policies, and security. The study employs a data set on finished vehicle FDI across 31 states and the Federal district for the period of 2004–2014. We adopt a two‐part model. The first part, which includes all states and the Federal district, is estimated with pooled logistic and Firth logistic regressions. In the second part, we examine variation in levels of FDI among states selected for investment with pooled ordinary least squares with panel‐corrected and Driscoll Kraay standard errors. Labor conditions are significant for both state selection and levels of FDI, but education is influential only in the selection stage. In addition, states with trunk rail lines linked to the U.S. border are more likely to be selected and receive higher FDI. After controlling for these influences, murder and homicide rates, and state development have no significant effects.

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Violence in Mexico and its effects on labor productivity

Cited by 21 publications

References 31 publications

The effect of FDI on low and high-skilled employment and wages in Mexico: a study for the manufacture and service sectors

The effect of FDI on low and high-skilled employment and wages in Mexico: a study for the manufacture and service sectors

Assessing the effects of the Mexican Drug War on economic growth: An empirical analysis

Foreign direct investment flows to Mexican states: A study of the automobile industry, 2004–2014

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