MPRAMunichPersonalRePEcArchiveTheEffectsofForeignDirectInvestmentinMexicosinceNAFTAWaldkirch,://-,:08TheEffectsofForeignDirectInvestmentinMexicosinceNAFTA∗AndreasWaldkirch†March2008AbstractForeignDirectInvestment(FDI)intoMexicohasincreaseddramaticallysincetheinceptionoftheNorthAmericanFreeTradeAgreement(NAFTA),,,ponents,position,andsourcesfrom1994-,particularlytotalfactorproductivity(TFP).Theeffectonwagesisnegativeorzeroatbest,-maquiladoraindustries,,:ForeignDirectInvestment,Mexico,NAFTA,Productivity,Wages,:F15,F21,F23,O15.∗Ithankseminarparticipantsatthe4thMinnesotaInternationalEconomicDevelopmentConference,theWesternEconomicAssociationConferenceinSeattle,theEuropeanTradeStudyGroupConferenceinAthens/mentsonanearlierversionofthepaper.†DepartmentofEconomics,ColbyCollege,5244MayflowerHill,Waterville,ME04901,-mail:andreas.******@:207-859-:207-859-,foreigndirectinvestment(FDI),eanimportant,ifnotthemostimportantsourceofexternalfinancing(UNCTAD,2006).Drivingatleastsomeofthisincreasehasbeenawidespreadchangeinpoliciesascountrieshaveturnedawa
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