The enclave economy: foreign investment and sustainable development in Mexico's Silicon Valley
Foreign investment has been widely perceived as a panacea for developing countries—as a way to reduce poverty and kick-start sustainable modern industries. The Enclave Economy calls this prescription into question, showing that Mexico's post-NAFTA experience of foreign direct investment in its information technology sector, particularly in the Guadalajara region, did not result in the expected benefits. Charting the rise and fall of Mexico's "Silicon Valley," the authors explore issues that resonate through much of Latin America and the developing world: the social, economic, and environmental effects of market-driven globalization.
In the 1990s, Mexico was a poster child for globalization, throwing open its borders to trade and foreign investment, embracing NAFTA, and ending the government’s role in strengthening domestic industry. But The Enclave Economy shows that although Mexico was initially successful in attracting multinational corporations, foreign investments waned in the absence of active government support and as China became increasingly competitive. Moreover, the authors find that foreign investment created an "enclave economy" the benefits of which were confined to an international sector not connected to the wider Mexican economy. In fact, foreign investment put many local IT firms out of business and transferred only limited amounts of environmentally sound technology. The authors suggest policies and strategies that will enable Mexico and other developing countries to foster foreign investment for sustainable development in the future.
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Review: The Enclave Economy: Foreign Investment and Sustainable Development in Mexico's Silicon ValleyUser Review - Ed - Goodreads
I lived this from 2000 on. They hit the issues dead on. Read full review
The Emergence of Mexicos Enclave Economy
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Amsden assembly backward linkages billion brominated flame retardants capacities capital chemicals China companies contract manufacturers costs crowd developing countries domestic firms domestic investment domestic market Dussel e-waste economic growth electronic waste electronics industry enclave environment environmental management environmental performance exports FDI inflows Flextronics foreign direct investment foreign firms foreign investment global flagships global IT industry global markets global production globally competitive Guadalajara Hewlett-Packard high-tech important increase industry policies infrastructure innovation inputs interviews Jabil Circuit Jalisco knowledge spill-overs Korea Latin America liberalization Malaysia manufacturing sector maquila maquiladoras ment Mexican Mexican firms Mexican government Mexico MNCs Moreover NAFTA OECD operations outsourcing Pantera percent personal computers peso plant pollution promote regional requirements role skills Solectron Source strategy suppliers supply chains sustainable industrial development Taiwan targeted tariff technology transfer tion toxic United upgrading value chain wages Washington Consensus workers