The Effects of Foreign Direct Investment in Mexico Since NAFTA. PDF Download
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Author: Andreas Waldkirch
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Foreign direct investment (FDI) into Mexico has increased dramatically since the inception of the North American Free Trade Agreement (NAFTA), raising questions about its effect on the Mexican economy. This paper studies the impact of FDI on industry productivity and wages over the first 10 years of NAFTA, paying particular attention to the source country and destination industry of investments. It also offers a detailed description of the evolution of FDI, its components, sectoral composition and sources from 1994-2005. There is evidence of a positive effect of FDI on productivity, particularly total factor productivity (TFP). The effect on wages is negative or zero at best, suggesting a divergence from productivity over this time period. The positive productivity effect stems largely from US FDI into non-maquiladora industries, which receive over two-thirds of manufacturing FDI. There is no evidence that more distant source countries have a differential effect. Consistent with theoretical expectations, FDI into maquiladoras benefits unskilled workers at the expense of skilled workers.
Author: Andreas Waldkirch
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Foreign direct investment (FDI) into Mexico has increased dramatically since the inception of the North American Free Trade Agreement (NAFTA), raising questions about its effect on the Mexican economy. This paper studies the impact of FDI on industry productivity and wages over the first 10 years of NAFTA, paying particular attention to the source country and destination industry of investments. It also offers a detailed description of the evolution of FDI, its components, sectoral composition and sources from 1994-2005. There is evidence of a positive effect of FDI on productivity, particularly total factor productivity (TFP). The effect on wages is negative or zero at best, suggesting a divergence from productivity over this time period. The positive productivity effect stems largely from US FDI into non-maquiladora industries, which receive over two-thirds of manufacturing FDI. There is no evidence that more distant source countries have a differential effect. Consistent with theoretical expectations, FDI into maquiladoras benefits unskilled workers at the expense of skilled workers.
Author: Miguel Messmacher
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Cross-country panel data are used to assess the effect of free-trade agreements on flows of foreign direct investment (fdi). Free-trade agreements are found to have a significant positive effect on fdi flows, and free-trade agreements are found to matter more for the smaller members of the agreement. For example, the North American Free-Trade Agreement`s (nafta) effect on fdi flows into Mexico is much larger than its effect on flows into the United States. These cross-country results are used to assess nafta`s effect on fdi flows into Mexico. After controlling for a set of other factors-such as an increase in worldwide fdi flows-the trade agreement is found to generate fdi flows nearly 60 percent higher than they would have been without the agreement.
Author: Alfredo Cuevas
Publisher:
ISBN:
Category : Electronic book
Languages : en
Pages :
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Book Description
Author: Jürgen Gatz
Publisher: Peter Lang Publishing
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 218
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Book Description
Author: Won-Ho Kim
Publisher: 대외경제정책연구원
ISBN:
Category : Free trade
Languages : en
Pages : 70
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Book Description
Author: M. Angeles Villarreal
Publisher: DIANE Publishing
ISBN: 1437932827
Category : History
Languages : en
Pages : 29
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Book Description
Mexico has a population of about 111 million people, making it the most populous Spanish-speaking country in the world. Contents of this report: (1) Intro.; (II) U.S.-Mexico Econ. Trends: Mexico-U.S. Bilateral Foreign Direct Invest.; Mexico¿s Export-Oriented Assembly Plants; Worker Remittances to Mexico; Security and Prosperity Partnership of N. Amer.; (3) The Mexican Economy: Economic Reforms; Effects of the Global Financial Crisis; Poverty; Regional Free Trade Agree.; (4) NAFTA and the U.S.-Mexico Econ. Relationship; (5) U.S.-Mexico Trade Relations: Trucking Issue: Truck Pilot Program; Mexico¿s Retaliatory Tariffs; Other Trade Issues; (6) Policy Issues. Charts and tables. This is a print on demand publication.
Author: Jorge Máttar
Publisher: United Nations Publications
ISBN:
Category : Business & Economics
Languages : en
Pages : 52
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Book Description
This publication reviews the economy of Mexico, and is divided into four main sections: the behaviour of aggregate investment and its relationship to the growth process; trends and performance of foreign direct investment (FDI); the behaviour and determining factors of investment in manufacturing; and the impact of investment patterns on the manufacturing industry's structure and export performance.
Author: Antoni Estevadeordal
Publisher: BID-INTAL
ISBN: 950738250X
Category : Free trade
Languages : en
Pages : 50
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Book Description
Author: Karl-Guenther Illing
Publisher: GRIN Verlag
ISBN: 3638269965
Category : Business & Economics
Languages : en
Pages : 93
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Book Description
Diploma Thesis from the year 2004 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 1,3 (A), European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Economic Policy and Political Economy), language: English, abstract: In January 1994, after two and a half years of negotiation, the North American Free Trade Agreement (NAFTA) came into force. The treaty between Canada, Mexico and the United States has created the largest economic area in the world, slightly surpassing the European Union in market size. But NAFTA is also outstanding in a second aspect: it has constituted the first major regional integration arrangement between two highly developed countries, the United States and Canada, and a developing country, Mexico. The North-South nature of North American integration has polarized the debate about NAFTA from the earliest stage on. On the one hand it was unclear how much the U.S. would gain from the agreement. Would it stabilize its southern neighbor and thus benefit the U.S. economically and politically? Or would it cause the “giant sucking sound” Ross Perot feared, drawing thousands of jobs from the U.S. over the border (Thorbecke/Eigen-Zucchi 2002, p. 648)? Regarding these concerns, Canada was at most a side-player, possessing neither intense trade relations nor geographical proximity to Mexico. Mexico’s gains from NAFTA, on the other hand, seemed even more unsure. The agreement’s effects on the southern member state, whether positive or negative, were expected to be unequally greater than on the U.S. On the one hand, it seemed, Mexico could gain immensely through improved access to the North American market, increasing trade, attracting foreign investment, and importing growth and stability. On the other hand, some trade economists, such as Arvind Panagaria (1996, pp. 512-513) warned that Mexico could only lose when opening its market to its powerful northern neighbors, while receiving little in return that it would not have obtained anyway. Furthermore, would Mexico’s move towards regional integration hamper any further step into the direction of multilateral opening, after promising reforms had been started in the mid-1980s? Concerns also regarded the adverse effects of NAFTA within Mexico. These centered around large adjustment costs from sectoral restructuring and resource reallocation. This would occur if inefficient, partly subsidized Mexican industries declined after removing tariffs and non-tariff barriers, allowing the North American competition to enter the national market. In addition, would this hit mostly those Mexican regions that were poor anyway?
Author: Patricio Aroca Gonzalez
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it would increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States. Since poor data on illegal flows to the United States make direct measurement difficult, Aroca and Maloney instead evaluate the mechanism behind these predictions using data on migration within Mexico where the census data permit careful analysis. They offer the first specifications for migration within Mexico, incorporating measures of cost of living, amenities, and networks. Contrary to much of the literature, labor market variables enter very significantly and as predicted once the authors control for possible credit constraint effects. Greater exposure to FDI and trade deters out-migration with the effects working partly through the labor market. Finally, the authors generate some tentative inferences about the impact on increased FDI on Mexico-U.S. migration. On average, a doubling of FDI inflows leads to a 1.5-2 percent fall in migration.
