By critically appraising current theories of both Foreign Direct
Investment (FDI) and agglomeration, this book explores the variety
of links that exist between these two externality-creating
phenomena. Using in-depth empirical research on Mexico, Jacob
Jordaan constructs and analyzes several datasets on Mexican
manufacturing industries at various geographical scales, creating
innovative models on FDI externalities that incorporate explicitly
regional considerations. The empirical findings identify both
direct FDI spillover effects as well as the effects of
agglomeration on these externalities. In extension of this, the
analysis also contains analysis of FDI productivity effects that
arise through inter-firm linkages between FDI and local Mexican
suppliers.
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