Economic and social indicators in Mexico and China and their Influence on Foreign Direct Investment

The objective of this research in to analyze the incidence of the economic and social indicators of Mexico and China on the flows of direct foreign investment. For this purpose, it is analyzed first the behavior of the main macroeconomic variables of these economies. Subsequently, the theories of foreign direct investment are reviewed in order to understand its nature, motivations, and ways in which it is presented. From which the methodological features of the econometric models applied to each country are addressed. The results establish that in the Mexican case, the value added in the manufacturing industry and intentional homicides determined the flow of direct foreign investment to the country. While salaries, public spending on education and intentional homicides motivated foreign direct investment in the case of China.