Regional Foreign Participation and Externalities: New Empirical Evidence from Mexican Regions

Recent empirical research on externalities from foreign direct investment (FDI) is engaged with the identification of externalities along the dimensions of industry and geographical space. In this paper I explore these externality dimensions in the context of estimating FDI externalities in regional...

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Bibliographic Details
Published inEnvironment and planning. A Vol. 40; no. 12; pp. 2948 - 2969
Main Author Jordaan, Jacob A
Format Journal Article
LanguageEnglish
Published London, England SAGE Publications 01.12.2008
Pion
Pion Ltd, London
SeriesEnvironment and Planning A
Subjects
America
Bgi / Prodig
Economic geography
Externalities
Foreign direct investment
Human geography
Industrial production
Manufacturing
Mexico
Mexico and Central America
Regional economics
Spatial analysis
Mexico
Externalities
Industry
Regional analysis
Spatial economy
Foreign investment
Industrial branch
Firm
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Summary:Recent empirical research on externalities from foreign direct investment (FDI) is engaged with the identification of externalities along the dimensions of industry and geographical space. In this paper I explore these externality dimensions in the context of estimating FDI externalities in regional Mexican manufacturing industries. The main findings indicate that the presence of FDI creates a variety of externality effects. Intraregional foreign participation creates negative intraindustry and positive interindustry externalities. Furthermore, the estimations identify negative intraindustry externalities across regions and positive spatial interindustry FDI externalities. In addition, the estimations identify three different regional characteristics that have a negative or positive effect on spatial externalities from FDI.
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ISSN:0308-518X
1472-3409
DOI:10.1068/a39206