The effect of violent crime on FDI: The case of Mexico 1998--2006.

摘要

Theory and research have revealed important elements of the structure and functioning of Foreign Direct Investments (FDI) in developing countries. The objective of this quantitative study is to shed light on the determinants of FDI in Mexico. Particularly, on the effect that violent crime has on FDI.;The aim is to understand whether and to what extent FDI undertaken by multinational enterprises reacts to an increase on violence in the host country. In order to carry it out this research, I performed an econometric model analysis for the years 1998-2006 based in panel data, created specifically for this purpose.;The idea of this study resides on the perception that violent crime in Mexico has reached a level that could have been affecting multinational enterprises decision on whether to invest or not in Mexico. Among the mayor conclusions I have that FDI is correlated to violent crime, GDP and minimum wages.