Abstract

The aim of this investigation is to analyze the evolution of the spatio-temporal distribution of foreign direct investment (FDI) across Mexican states. The literature that analyzes foreign direct investment in Mexico is numerous and diverse; however, it is argued that the analysis of the spatio-temporal distribution of FDI conditioned to spatial interaction effects in Mexico is still absent. In this sense, by applying the spatial Markov chain approach as proposed by Rey (2001), we found a divergence process in the FDI inflows among Mexican states that seem to get stronger over time. In particular, during the period from 2006 to 2013, the process of divergence toward higher-FDI inflows quantiles occurs among states spatially associated with neighbors in lower-FDI quantiles.

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