Abstract

LANDA DIAZ, Heri Oscar; CEREZO GARCIA, Verónica  and  PERROTINI HERNANDEZ, Ignacio. The effect of foreign direct investment and the export growth model on capital formation and production linkages in Mexico: A multisectoral analysis. Contad. Adm [online]. 2022, vol.67, n.3, 00014.  Epub June 06, 2023. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2022.4689.

The paper’s aim is to analyse the effect of both trade and financial liberalization on Mexico’s capital formation and intersectoral productive linkages. The impact of both exports and foreign direct investment (FDI) on the stock of capital and their impulse and dispersion effects across the country’s various productive sectors is empirically assessed during the period 1999-2020. Our main results suggest: i) an increase in both exports and FDI did not bring about an increment in the stock of capital; ii) one effect of FDI was the fragmentation of most local subsectors and their lack of international insertion; iii) a significant statistical relationship between FDI and forward linkages does not seem to exist and iv) a negative relationship between variations in productivity/competitiveness and fixed capital formation was found.

Keywords : trade openness; foreign direct investment; productive linkages; capital formation.

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