We explore a model of time varying regional market integration that includes three factors, for the North American equity market, the local Mexican equity market and the peso/dollar exchange rate. We argue that a useful instrument for the degree of integration is the sovereign yield spread....

Over the past decade, foreign direct investment (FDI) around the world has nearly tripled, and with this surge have come dramatic shifts in FDI flows. In Foreign Direct Investment, distinguished economists look at changes in FDI, including historical trends, specific country experiences,...