Abstract

BRISENO PEREZYERA, José Israel  and  NEME CASTILLO, Omar. Repatriación de utilidades de la inversión extranjera directa: la relación entre México y Estados Unidos. Norteamérica [online]. 2011, vol.6, n.1, pp. 127-166. ISSN 1870-3550.

The aim of this study is to use econometric cointegration techniques to determine the short- and long-term effects on both economies of repatriating the profits earned by U.S. direct investment in Mexico. Some authors speculate that the Mexican economy is more sensitive to the repatriation of profits. The results presented here, however, indicate that not reinvesting benefits the U.S. economy more, both in the short and the long term. It therefore seems appropriate to establish a combination of targeted incentives and universal actions to boost the Mexican economy.

Keywords : earnings; reinvestment; repatriation; economic effects.