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We study the convergence hypothesis for Mexican states during the period 1994–2015 considering the impact not only of NAFTA but also of other external shocks, such as China’s entry into the World Trade Organization (WTO) in 2001 and the global financial crisis of 2008. Using econometric panel data models with no fixed effects to avoid small sample bias, the main results indicate: (a) presence of absolute...
We analyze the main characteristics that help explain the regional distribution of manufacturing foreign direct investment (FDI) in Mexico. Our main findings indicate the presence of a positive spatial relationship among states’ FDI which, combined with the zero effect found for the market potential variable, points to the presence of complex vertical FDI. We consider that this is consistent with...
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