Abstract

GUZMAN ANAYA, Leo  and  LUGO SANCHEZ, María Guadalupe. Location Determinants of Japanese Automotive FDI in Mexican States, 2013-2018. Ens. Rev. econ. [online]. 2023, vol.42, n.2, pp.183-210.  Epub Jan 29, 2024. ISSN 2448-8402.  https://doi.org/10.29105/ensayos42.2-3.

Foreign Direct Investment (FDI) location theories highlight the regional factors that influence the location and spatial distribution of the investment project. The study employs a state-level spatial panel econometric model to empirically contrast the main location factors that influence the spatial distribution of Japanese companies. The main results indicate that state characteristics related to wages, education levels, and market size influence the presence of Japanese automotive firms in Mexico. The results also highlight the presence of negative spatial externalities for the market size and education variables. Positive spatial externalities were observed from the industry agglomeration variable, which can reflect the presence of production networks in the automotive industry, especially in the case of Japanese firms. This shows that neighboring states compete for the arrival of Japanese automotive firms, and spatial effects are present.

Keywords : Japanese Foreign Direct Investment; Spatial Analysis; Location Determinants; Automotive Industry.

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