Abstract

TINOCO-GARCIA, María José  and  GUZMAN-ANAYA, Leo. Regional Foreign Direct Investment Attraction Determinants in Mexico. Anál. econ. [online]. 2020, vol.35, n.88, pp.89-117.  Epub Nov 13, 2020. ISSN 2448-6655.

The study aims to analyze the determinant factors for the attraction of Foreign Direct Investment (FDI) in Mexico during the period of 2000-2018. To achieve this goal a dynamic panel data econometric model is employed, where the dependent variable is represented by FDI flows to Mexican states and the independent variables proposed include regional demand, production costs, presence of regional agglomeration economies and regional public policies. The results indicated that production costs, agglomeration economies and lagged FDI are determinants for the attraction of FDI in Mexico; on the other hand, the variable of regional demand was significant under certain specifications and the variable for public policies did not produce significant results.

Keywords : Foreign direct investment; attraction factors; dynamic panel data analysis.