The determinants of FDI of the mexican companies in the USA
DOI:
https://doi.org/10.29105/rinn2.4-1Keywords:
Fdi, Multinational Corporations, GlobalizationAbstract
In recent years, and for the first time in Mexican economic history, outward direct investment flows rich $5,800 millions of dollars in just one transaction. In this paper, we analyse the factors that determine outward direct investment by Mexican companies. We apply Dunning’s eclectic paradigm, which distinguishes between ownership, internalization and location advantages. In applied studies, these advantages have usually been approximated by variables relating to the investing firm and variables about host countries. Our research endeavours to identify which of these variables determine the probability of a manufacturing Mexican firm to own production subsidiaries overseas.
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