Abstract

GALINDO RODRIGUEZ, José. The Origin of Crony Capitalism in Modern Mexico And Its Current Impact on Foreign Direct Investment. Norteamérica [online]. 2021, vol.16, n.2, pp.209-250.  Epub Apr 04, 2022. ISSN 2448-7228.  https://doi.org/10.22201/cisan.24487228e.2021.2.467.

This article analyzes the extent to which crony capitalism (CC) affects international business activities. By using the case of Canadian companies investing in mining in Mexico, the author explains how cc impacts foreign direct investment, arguing that it does not imply negative consequences for international business activities if other variables are controlled domestically. Crony capitalism could even generate positive incentives for foreign investors since it deepens corruption internally. This type of corruption does not elevate the risk perceived by foreign investors if the process of doing business in Mexico is under the control of domestic power groups.

Keywords : crony capitalism; mining; foreign direct investment; Mexico; Canada.