Vol. 6 Num. 1 - GCG: Revista de GlobalizaciÃ³n, Competitividad y ...

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James GerberTable 3: Dispersion of Population, GDP, and FDI, by Region, 2007105RegionMexicoBorder and Sea of CortezBaja California, Baja California Sur,Coahuila, Chihuahua, Nuevo León,Sinaloa, Sonora, TamaulipasCentralDistrito Federal, Hidalgo, México,Morelos, Puebla, Queretaro, TlaxcalaWestAguascalientes, Colima, Guanajuato,JaliscoNorthDurango, Nayarit, San Luis Potosí,ZacatecasGulf Coast and Yucatan PeninsulaCampeche, Quintana Roo, Tabasco,Veracruz, YucatánMexican South PacificChiapas, Guerrero, Michoacán,OaxacaChinaNorth CentralBeijing, Tianjin, Hebei, Shanxi, InnerMongoliaNorth EastLiaoning, Jilin, HeilongjiangEast CentralShanghai, Jiangsu, Zhejiang, Anhui,Fujian, Jiangxi, ShandongSouth EastHenan, Hubei, Hunan, Guangdong,Guangxi, HainanSouth WestChongqing, Sichuan, Guizhou,Yunnan, TibetPercent of totalpopulationPercent of totalGDPPercent of totalFDI (2003-07)*Y/P as a shareof national level0.208 0.261 0.206 1.2560.337 0.360 0.635 1.0680.128 0.123 0.096 0.9570.060 0.044 0.019 0.7280.124 0.140 0.016 1.1270.143 0.073 0.025 0.5090.117 0.145 0.103 1.2360.082 0.085 0.074 1.0320.287 0.380 0.501 1.3230.276 0.260 0.262 0.9420.148 0.081 0.024 0.552In contrast, China’s capital region receives less FDI than its share of GDP, although thedifferences are not great. The East Central region, which includes Shanghai, Jiangsu, andFujian, among other provinces, receives more inward FDI while the South East (Guangdong,and others) and North East receive FDI shares that are nearly equivalent to their GDP share.In general, the difference between a region’s share of national GDP and its share of inwardFDI is much greater in Mexico, indicating more concentration of FDI 14 .14. This holds for both the mean absolute deviation and the standard deviation of the regional differences between GDP and FDI shares.GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 91-106
Why isn’t Mexico on China’s Growth Path?106 Table 3 is not conclusive, but it does illustrate a fundamental difference in the dispersion ofFDI in Mexico and China. Mexico’s is disproportionately concentrated in the center of thecountry, in and around the capital. China’s FDI, by contrast, is much larger and is dispersedmore evenly across the eastern coastal regions, where access to transportation infrastructureand foreign markets are greater. Hypothetically, but worth further investigation, a more widelydispersed FDI leads to a wider diffusion of technology, less congestion of transportationand logistics in export centers, and a broader geographical distribution of the benefits ofeconomic growth. Regardless of the benefits that dispersed inward FDI may generate, itis indirect evidence of greater decentralization of the Chinese economy. Local officials arerewarded if they generate economic growth, and inward FDI is one way to accomplish that.5. Conclusion: Policy and geography overlapObviously, Mexico cannot change its location, but in theory at least, it can adopt a lesscentralized form of federalism. The perceived need for a strong center was created partly asa reaction to US imperialism and the dismembering of large parts of the country in the 19 thCentury, along with the state’s nation-building policies in the post-revolutionary 20 th Centuryas the national government tried to overcome the many languages and ethnicities of thecountry by forging a Mexican identity. Nevertheless, the cultural and economic presenceof the US on the nation’s northern border was a constant pressure and lent urgency to theformation of a central state capable of resisting its wealth and power. In that sense, “the badneighborhood” hypothesis is responsible, at least in part, for the highly centralized structureof Mexico’s public finances and the relative lack of local autonomy from the center.Other factors are important as well: China saves 40 percent of its GDP, Mexico a little morethan 20 percent; high savings allow high investment but also generate large reserves thatguard against external macroeconomic shocks; China actively uses industrial policies; itimposes performance requirements on its inward FDI in order to promote technology transfer;its sheer size forces the world’s leading firms to develop a presence inside the country;and the communist era eliminated most traditional economic interest groups and wiped outopposition to subsequent reforms. Some of these factors may be irrelevant; for example, therole of industrial policy is debated. The point here is not to argue that there is one factor or asimple formula for turning a desperately poor country into a rich one. As many others havepointed out, if economic growth were easy and obvious, all countries would be rich. Rather,the goal is to propose two factors that stand out when Mexico is contrasted with China.GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 91-106
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CARTA DEL EDITOR IN CHIEFEditor in
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StaffDe la Torre, José, Dean, Chap
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Staff2. MULTINACIONALES, INVERSIÓN
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SELECCIÓN PROCEDURE PROCEDIMENTOIN
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Instrucciones para Autores y Proced
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INDEXACIÓN INDEXING INDEXAÇÃOInd
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Economic Relationships between Lati
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Miguel A. MontoyaThe rest of the pa
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International Joint Ventures among
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36Japanese Foreign Direct Investmen
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Japanese Foreign Direct Investment
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Page 132 and 133: Zhu HongboIn fact, some Latin Ameri
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Page 136 and 137: 1. Introduction137China’s emergen
Page 138 and 139: Edy WongTable One: Compositions of
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Page 142 and 143: Edy Wongon ‘new economic geograph
Page 144 and 145: Edy WongIn today’s global market,
Page 146 and 147: Edy Wongdemand-side factors in the
Page 148 and 149: Edy Wongterms of quality, reliabili
Page 150 and 151: Edy Wongindustry. Second, value cha
Page 152 and 153: Edy Wongconsumption of Western luxu
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Edy WongReferences155Child, J.; Rod
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