FOREIGN DIRECT INVESTMENT IN MEXICO, CRIME, AND ECONOMIC FORCES
Academic Article in Scopus
-
- Overview
-
- Identity
-
- Additional document info
-
- View All
-
Overview
abstract
-
© 2018 Western Economic Association International This paper re-examines inflows of foreign direct investment (FDI) in the 32 subnational Mexican states based on quarterly data from 2005 to 2015, which includes rising drug-related crimes. We estimate our models using panel data methods by type of crime, state-level indicators (real wages and electricity consumption), macroeconomic forces (the real exchange rate and interest rate), and a dummy variable for the financial crisis of 2008¿2009. We employ a flexible lag-length method and find that homicides and thefts have negative and statistically significant effects on FDI, while other crimes have no effects. Subsample work suggests higher negative effects in the most violent states. (JEL F15, F21, F23, F36).
status
publication date
published in
Identity
Digital Object Identifier (DOI)
Additional document info
has global citation frequency
start page
end page
volume