Foreign direct investment and labor productivity in the regional manufacturing industry

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 meth...

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Detalles Bibliográficos
Autores: Rangel González, Erick, López Ornelas, Luis Fernando
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:México
Institución:UNIVERSIDAD DE GUADALAJARA
Repositorio:EconoQuantum
Idioma:español
OAI Identifier:oai:econoquantum.cucea.udg.mx:article/7252
Acceso en línea:https://econoquantum.cucea.udg.mx/index.php/EQ/article/view/7252
Access Level:acceso abierto
Palabra clave:Labor Productivity
foreign direct investment
manufacturing
México
Productividad Laboral
Inversión Extranjera Directa
Manufacturas
Descripción
Sumario: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.