Foreign Direct Investment and Regional Economic Growth considering the Distance to the Northern Border of Mexico

oleh: Alejandro Díaz-Bautista

Format: Article
Diterbitkan: Universidad Autónoma Metropolitana 2006-01-01

Deskripsi

The study reviews the different theories that explain the tendencies of FDI at the regional level in Mexico. The effects of the NAFTA agreement in regional FDI are also analyzed. An empirical econometric model is used to analyze the relation between the FDI and economic growth at the regional level in Mexico, with an approach of the new economic geography and endogenous economic growth. The results show that distance to the Mexico-U.S. Border is an important variable that explains regional economic growth. The results support the new economic geography theories.