Using data from 6378 Mexican firms for the 2012–2013 period, this paper estimates the effect of competition with China for the US market on the innovation efforts of the Mexican manufacturing sector. After controlling for the influence of several variables, we find a U-curve shaped...

This article analyzes the historical patterns of foreign investment in Latin America and the recent Mexican financial crisis in order to examine the appropriate form of foreign investment in developing countries. It argues that these nations should increase foreign investment flows into their...