Abstract
In the past 15 years, Mexico has been favored by increasing flows of Foreign Direct Investment (FDI), being the Japanese source one of the most important. The chapter analyzes the impact of Japanese FDI in Mexico at the macro-level with emphasis on the impact of Japanese FDI on Mexico’s trade flows and on the formation of regional networks in the Transport Equipment sector (TE), especially within the North American Region. This study is carried out under the Fragmentation of Production Theory approach, which emphasizes the role of Multinational firms (MN) in international trade based on the new organization of production among plants in different countries. The analysis is based on database that classifies trade flows by main stages of production that allow assessing trade in intermediate goods and also on information on local and regional content of Japanese automotive brands assembled in Mexico. The results indicate that Japanese FDI in Mexico has contributed notably to the formation on production networks in North America in the TE sector.
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- 1.
Look at the Chap. 3 by Leo Guzman-Anaya for a more detailed account of Localization factors of Japanese investment in Mexico.
- 2.
See Chap. 5 by Maria Guadalupe Lugo-Sanchez to have a deeper look at the public policies carried out by the local governments of the Bajío region to foster investment.
- 3.
See Chap. 6 by Leo Guzman-Anaya for the role of Training Programs (TPs) carried out by JICA as mechanisms for technological and knowledge transfer to local firms and the productivity gains from these programs.
- 4.
See Ministry of Foreign Affairs of Japan (2002), I participated in this Group as part of the Mexican Academic Group.
- 5.
Look at Chap. 4 by Emma Mendoza that focuses on the demonstration effect from Japanese firms located within the State of Aguascalientes and the role of Nissan.
- 6.
See Chap. 6 by Leo Guzman-Anaya on the role that JICA is playing to train local suppliers.
- 7.
See Chap. 4 on Spillovers of Japanese Automotive Companies’ Activities in the State of Aguascalientes by Emma Mendoza in this book.
- 8.
Though lately it has not been mentioned by the US negotiators of NAFTA.
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Falck-Reyes, M. (2018). Japanese Foreign Direct Investment in Mexico’s Transport Equipment Sector. The Macro Impact: Regional Networks of Production and Trade. In: Falck-Reyes, M., Guzman-Anaya, L. (eds) Japanese Direct Investment in Mexico's Transport Equipment Sector. New Frontiers in Regional Science: Asian Perspectives, vol 22. Springer, Singapore. https://doi.org/10.1007/978-981-10-7718-0_2
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