FOREIGN DIRECT INVESTMENT IN MEXICO: ANALYSIS OF ITS DETERMINANTS ACCORDING TO INDUSTRIES CHARACTERISTICS

Abstract

An empirical study of foreign direct investment (fdi) determinants in the Mexican manufactures is presented. It is argued that the different motivations for fdi are guided by the characteristics of the destination industries, which, in part, determine their potential for local integration. To verify the hypothesis, a typology was built for 124 classes of manufacturing activities for the 2009-2018 period. Such activities were grouped by characteristics: maquiladora and non-maquiladora activity, and by orientation: national market or export. The panel data analysis with cointegration showed that the motivations for seeking markets, resources, efficiency, and strategic assets vary depending on the characteristics of the destination industries. The result is relevant to generate investment attraction policies that contribute to economic development.