Foreign direct investment, agglomeration and externalities: empirical evidence from Mexican manufacturing industries

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Ashgate, 2009 - Business & Economics - 211 pages
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By critically appraising current theories of both Foreign Direct Investment (FDI) and agglomeration, this book explores the variety of links that may exist between these two externality-creating phenomena and, for the first time, explores interrelationsips between them and their effects. Using in-depth empirical research from Mexico, the author analyses and constructs several datasets on on manufacturing industries, then creates innovative models of FDI-externalities, incorporating regional considerations.The surveys used look at the direct effect of geographical concentration on the productivity of firms and the indirect effect, through influencing externalities from FDI. Also, it focuses on the occurrence of externalities caused by links between foreign-owned manufacturing firms and local suppliers.

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Agglomeration and FDI Location in Mexican Regions
Intraindustry FDI Externalities in Mexican Manufacturing

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About the author (2009)

Jacob A. Jordaan is Assistant Professor in International Economics, VU University Amsterdam, The Netherlands.