Foreign Direct Investment and Regional Economic Growth considering the Distance to the Northern Border of Mexico
Díaz-Bautista Alejandro*

Abstract
The study reviews the different theories that explain the tendencies of FDI at the regional level in Mexico. The effects of the NAFTA agreement in regional FDI are also analyzed. An empirical econometric model is used to analyze the relation between the FDI and economic growth at the regional level in Mexico, with an approach of the new economic geography and endogenous economic growth. The results show that distance to the Mexico-U.S. Border is an important variable that explains regional economic growth. The results support the new economic geography theories.

Palabras clave: FDI, Regional Economic Growth, Northern Border, Regional Econometric Models, Mexico.
Clasificación JEL: F12, F15, F21, R11, R15.

* Alejandro Díaz-Bautista obtained his Ph.D. in Economics at the University of California, Irvine. He is Professor of Economics and Researcher at the Department of Economic Studies, and Coordinator of the Master’s Program in Applied Economics at Colegio de la Frontera Norte (Colef). Member of SNI. (adiazbau@hotmail.com) (http:// www.geocities.com/adiazbau/).

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