Resumen

LORIA, Eduardo. Impact of kidnappings and homicides on foreign direct investment in Mexico. Contad. Adm [online]. 2020, vol.65, n.3, 00006.  Epub 13-Sep-2021. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2020.2246.

At least since 2006, Mexico suffers an alarming increase in crime. High impact crimes such as murders and kidnappings have considerably increased. Since 2000, the Foreign Direct Investment (FDI) has stagnated in current US dollars and fallen as a proportion of GDP (from 3.9% in 2001 to 2.6% in 2017). By estimating six Vector Error Correction Models (with yearly data for the period 1997-2017), it is empirically proven the negative effect of the rate of kidnappings and murders on Total FDI, its components and the Mexican GDP. In all cases, the effects are permanent and significant. It is shown that policies focused on the recovery of the rule of law are crucial to raise economic growth.

Palabras llave : Foreign direct investment and its components; Kidnapping; Murder; Vector error correction (VECM); C32; C52; F21; K42.