Abstract

JUAREZ RIVERA, Carmen Guadalupe  and  ANGELES CASTRO, Gerardo. Foreign direct investment in Mexico: Determinants and its effect on income inequality. Contad. Adm [online]. 2013, vol.58, n.4, pp.201-222. ISSN 0186-1042.

By conducting panel data analysis across 32 federal entities in Mexico over the period 1994-2006, this paper studies the determinants of foreign direct investment (FDI) and its effect on income inequality within and between regions. We observe that the level of development and the size of the market have a direct relationship with FDI and therefore, they tend to increase the inequality gap between regions, but there is no evidence suggesting that it creates inequality within them.

Keywords : foreign direct investment; determinants; income inequality; panel data; economic growth.

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