Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/118997
Authors: 
Escobar, Octavio
Year of Publication: 
2010
Series/Report no.: 
50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden
Abstract: 
This paper studies the location pattern of foreign direct investment (FDI) in Mexico for the period 1994-2004. An empirical gravity type model is specified based on recent FDI theories and empirical papers. It is then estimated using state-level data by FDI source country. An extended gravity-type model with elements of multinationals theory is specified, and a methodology is introduced to take into account the zero-flows observations. Results suggest that not taking into account these observations lead to biased results. In addition, they suggest the influence of geographical location and wages as major determinants on the FDI distribution across Mexican states.
Document Type: 
Conference Paper

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