Regional Foreign Participation and Externalities: New empirical evidence from Mexican Regions

Jacob A. Jordaan, Free University of Amsterdam

Recent empirical research on externalities from Foreign Direct Investment (FDI) is engaged with the identification of externalities along the dimensions of industry and geographical space. In this paper, I explore these externality dimensions in the context of estimating FDI-externalities in regional Mexican manufacturing industries. The main findings indicate that the presence of FDI creates a variety of externality effects. Intra-regional foreign participation creates negative intra-industry and positive interindustry externalities. Furthermore, the estimations identify negative intra-industry externalities across regions and positive spatial FDI-externalities of an inter-industry nature. Finally, the estimations identify three different regional characteristics that have a negative or positive effect on spatial externalities from FDI.

About the speaker
Jacob A. Jordaan received his PhD degree at the London School of Economics. Currently, he is working as assistant professor in the department of economics at the Free University in Amsterdam. His current research focuses on Foreign Direct Investment in Mexican manufacturing industries. One of his interests lies in obtaining robust empirical evidence on the occurrence of FDI externalities within and between industries and in the empirical identification of structural factors that affect the level and nature of these externalities. Furthermore, he is interested in the empirical identification of FDI externalities that arise within and / or between regions

Venue: Conference room, 4th floor, UNU-MERIT, Keizer Karelplein 19, Maastricht '

Date: 25 February 2008

Time: 16:00 - 17:00