Colorado College Logo

  DigitalCC

Use AND (in capitals) to search multiple keywords.
Example: harmonica AND cobos

1 hits

  • Thumbnail for How big an impact should international trade policies have on foreign direct investment? : A portrait of Mexico as depicted on the 20th anniversary of NAFTA
    How big an impact should international trade policies have on foreign direct investment? : A portrait of Mexico as depicted on the 20th anniversary of NAFTA by Sanditen, Sarah

    Since the North American Free Trade Agreement (NAFTA) was enacted in 1994, the amount of foreign direct investment (FDI) inflow in Mexico has increased significantly. After 20 years since NAFTA’s inception, this paper examines how FDI flows into Mexico compare to total factor productivity (TFP) for the 1960-2013 period. Results show there is a statistically significant unexplained portion of TFP positively affecting FDI. Factors used to determine TFP include total imports, total exports, and unemployment rate from 1980-2013. Results conclude that there are implications regarding international trade policy of the negative effects on FDI as they pertain to Mexico before and after the inauguration of NAFTA.