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- Title
Externalities from foreign direct investment in the Mexican retailing sector.
- Authors
Cédric Durand
- Abstract
This contribution to the discussion on the impact of foreign direct investment in developing countries is based on an empirical study of the consequences of transnational corporations' presence in the Mexican retailing sector, particularly Wal-Mart. First, it is shown that the arrival of foreign firms accelerates the modernisation but has a negative impact on local firms' performance as well as local worker remuneration as a result of the growing competitive pressure in the sector. Second, the changes that occurred in supply chain governance and the tremendous increase of imports initiated by Wal-Mart are described, and some probable implications for local suppliers are suggested.
- Subjects
MEXICO; FOREIGN investments; RETAIL industry; INTERNATIONAL business enterprises; ECONOMICS
- Publication
Cambridge Journal of Economics, 2007, Vol 31, Issue 3, p393
- ISSN
0309-166X
- Publication type
Article
- DOI
10.1093/cje/bel046