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EconoQuantum
On-line version ISSN 2007-9869Print version ISSN 1870-6622
Abstract
RANGEL GONZALEZ, Erick and LOPEZ ORNELAS, Luis Fernando. Foreign direct investment and labor productivity in the regional manufacturing industry. EconoQuantum [online]. 2022, vol.19, n.1, pp.20-52. Epub May 23, 2022. ISSN 2007-9869. https://doi.org/10.18381/eq.v19i1.7252.
Objective:
To analyze the effects of Foreign Direct Investment (FDI) on labor productivity in the manufacturing sector in Mexico during the period 2007-2015.
Methodology:
Different econometric specifications are estimated by using different measures of labor productivity through the generalized method of moments, which allows to consider for possible endogeneity problems.
Results:
A positive and statistically significant effect of Foreign Direct Investment as a proportion of manufacturing GDP is identified on the growth rate of labor productivity calculated from the Manufacturing Labor Productivity Index.
Limitations:
The estimates do not consider the spatial geographic dimension between states.
Originality:
Previous studies in Mexico do not use a labor productivity measure based on total production or control for possible biases generated by omitted variables.
Conclusions:
The evidence suggests that FDI could contribute to economic development of states in Mexico by generating increases in labor productivity.
Keywords : Labor productivity; foreign direct investment; manufacturing; México.
