This paper investigates the effect of uncertainty on FDI flows into the Mexican manufacturing sector during the period … affect all manufacturing subsectors in general) uncertainty measures as explicative variables. We also perform some … simulations to quantify the effect of uncertainty on FDI flows. The main results show that uncertainty discourages FDI flows into …

expectations and document a strong negative relationship. However, the link is much weaker in bad times, since uncertainty is then … persistently high - even when expectations are favorable. I continue by investigating the relative importance of uncertainty and … not find evidence that uncertainty induced "wait and see" behavior. However, a deterioration in managers' expectations and …