Work

Externalities from foreign direct investment in the Mexican retailing sector

Year: 2007

Type: article

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.

Source: Cambridge Journal of Economics

DOI: 10.1093/cje/bel046

Author: C. Durand

Institutions: Lyon 1 Université, École des hautes études en sciences sociales

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W2025950341