Abstract
With the debt crisis of the 1980s, an economic transition began, replacing import substitution industrialization, with the aim of adopting a series of structural reforms as a new model of economic growth. In order to obtain the benefits associated with investment, governments in developing countries relaxed their barriers to foreign investment flows and actively promote the attraction of FDI through the provision of subsidies and tax incentives. In the empirical literature, four factors are identified as determinants of the FDI location decision: regional demand, regional production costs, regional policies and the regional presence of agglomeration economies. Studies focused on public policies as a determinant factor for the location of FDI in developing countries are relatively scarce. This study is focused on the fiscal policies offered by the Bajio states, and their role in attracting Japanese foreign direct investment in the automotive industry.
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Notes
- 1.
Mexico has a network of 12 Free Trade Agreements with 46 countries, 32 Reciprocal Investment Promotion and Protection Agreements (RIPPAS) and 9 Trade Agreements (Economic Complementation and Partial Scope Agreements) within the framework of the Latin American Integration Association (ALADI). Secretariat of Economy.
- 2.
Secretariat of Economy.
- 3.
The Financial Times.
- 4.
- 5.
Economic corridors in Guanajuato with presence of companies in the automotive industry:
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1.
Corredor Silao – San Felipe – Pueblos del Rincon.
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2.
Corredor de la Carretera Federal 57.
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3.
Corredor de la Carretera Federal 45.
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4.
Corredor Celaya – Acambaro.
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5.
Corredor Irapuato – Penjamo.
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6.
Corredor San Miguel de Allende – Dolores Hidalgo – Guanajuato.
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1.
- 6.
Due to the nature of the negotiations, representatives of the companies that were interviewed were not allowed to disclose the terms or details of negotiations. In other cases, the interviewee ignored the details of the negotiation for not being present during that process.
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Lugo-Sanchez, M.G. (2018). The Role of Public Policies in Attracting Japanese FDI in Mexico. 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_5
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