AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO

AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO

In this paper, I estimate conditional logit location models to identify the regional characteristics that influenced the location choice of the large influx of manufacturing FDI into Mexico that occurred in the second half of the 1990s following the creation of NAFTA. The main findings of the analys...

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Main Author: Jacob A. Jordaan
Format: Article
Language:English
Published: El Colegio de México, A.C. 2012-01-01
Series:Estudios Económicos
Online Access:http://www.redalyc.org/articulo.oa?id=59724371002
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spelling doaj-febb0bc775954b399fba8bc7fca2db662020-12-02T01:56:46ZengEl Colegio de México, A.C.Estudios Económicos0188-69162012-01-012716197AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICOJacob A. JordaanIn this paper, I estimate conditional logit location models to identify the regional characteristics that influenced the location choice of the large influx of manufacturing FDI into Mexico that occurred in the second half of the 1990s following the creation of NAFTA. The main findings of the analysis are three-fold. First, regional demand, labor costs, labor quality, agglomeration economies and regional distance to Mexico City and the US are all important location factors. Second, findings indicate that the location decision of export-oriented firms is not affected by regional demand. Third, I find evidence that agglomeration economies have a spatial dimension.http://www.redalyc.org/articulo.oa?id=59724371002
collection DOAJ
language English
format Article
sources DOAJ
author Jacob A. Jordaan
spellingShingle Jacob A. Jordaan
AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO
Estudios Económicos
author_facet Jacob A. Jordaan
author_sort Jacob A. Jordaan
title AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO
title_short AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO
title_full AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO
title_fullStr AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO
title_full_unstemmed AGGLOMERATION AND THE LOCATION CHOICE OF FOREIGN DIRECT INVESTMENT: NEW EVIDENCE FROM MANUFACTURING FDI IN MEXICO
title_sort agglomeration and the location choice of foreign direct investment: new evidence from manufacturing fdi in mexico
publisher El Colegio de México, A.C.
series Estudios Económicos
issn 0188-6916
publishDate 2012-01-01
description In this paper, I estimate conditional logit location models to identify the regional characteristics that influenced the location choice of the large influx of manufacturing FDI into Mexico that occurred in the second half of the 1990s following the creation of NAFTA. The main findings of the analysis are three-fold. First, regional demand, labor costs, labor quality, agglomeration economies and regional distance to Mexico City and the US are all important location factors. Second, findings indicate that the location decision of export-oriented firms is not affected by regional demand. Third, I find evidence that agglomeration economies have a spatial dimension.
url http://www.redalyc.org/articulo.oa?id=59724371002
work_keys_str_mv AT jacobajordaan agglomerationandthelocationchoiceofforeigndirectinvestmentnewevidencefrommanufacturingfdiinmexico
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