Foreign Direct Investment in Mexico : Possible Effects on the Economic Growth

The purpose of this paper is to examine whether foreign direct investment, FDI, has any impact on economic growth in Mexico. In order to find a possible connection I use a multiple regression analysis with GDP per capita as dependent variable. Furthermore, I critically examine previous studies of FDI and its effect on GDP per capita in Mexico as well as other studies with several developed and developing countries. The difference between this paper and previous studies is that the data is more up-to-date here. My results, like most of the previous studies, do not indicate on any statistical significance that FDI has a positive effect on economic growth. FDI do however seem to produce positive spillover effects on the domestic economy, mainly through knowledge and technological spillovers.