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Melba Falck ReyesConcerning the flow of Japanese FDI to Mexico, while the maquiladora plant system beganattracting Japanese investment to the country from its establishment in 1964, it was duringthe eighties that the establishment of new companies began to accelerate: 26 in the eighties,45 in the nineties and 37 between 2000 and 2007 (Table 1). The attraction factors on the partof Mexico and those of impulse on the part of Japan have changed with time. In the eighties,Mexico’s crisis in 1982 coincided with the revaluation of the Japanese yen, as discussedabove. In the nineties, the signing of the NAFTA in 1994 was a strong incentive for attractingJapanese FDI. On the other hand, at the end of that decade the liberalization of the regime ofcapital movement control consolidated in Japan. In the present decade, the two countries’needs to improve their competitiveness in the global markets induced them to create synergies:while Mexico has a consolidated exporting basis that has prospered with the gradualformation of production clusters in the electronic and transport sectors integrated with NorthAmerican activities; Japan has an important basis of establishments in the US that are interestedin taking the advantages Mexico has to offer. Thus, the entrance of Japanese FDIinto Mexico is explained to a great extent by both countries’ economic relation with the US(Falck Reyes 2009c).43Table 1. Flow of Japanese Maquiladora plants into Mexico, Selected Periods.Flow data by periods and distribution by State. Number of plantsFlow by periodsGeographical Distribution by StatePeriod Number * Baja California Chihuahua Nuevo León Tamaulipas Total**Total 110 42 18 36 8 1041978-1979 2 1 1 0 0 21982-1989 26 12 5 5 1 231990-1999 45 23 6 8 7 442000-2004 22 4 4 13 0 212005-2007 15 2 2 10 0 14Source: Own elaboration with data from Yamazaki, Benito (2008).*The source does not report the year of establishment of two maquiladora plants.** The source does not report the year of establishment of four maquiladora plants.Of the total number of Japanese companies established in Mexico until the year 2010 (387),34% was in the manufacturing sector, 26% in trade activities and the remainder in servicesand other (Table 2); one third of the companies operate under the maquiladora scheme. Accordingto the survey by the Japanese Maquiladora Association, which collected data from70 companies in 2004, 46% concentrated on services including banking; 43% concentratedon the production of molds and components and the remaining 13% concentrated on theassembly of products 3 .3. Japanese Maquiladora Association, “Activity Presentation 2004”. http://www.economia.gob.mx/pics/p/p1776/Sakae.pdfGCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 36-54
Japanese Foreign Direct Investment in Mexico and the Impact of the Global Crisis44Table 2. Japanese firms in Mexico: Establishments and Accumulated Foreign Direct Investment.Distribution by Main Sectors. In percentages.Sector Establishments* Foreign Direct Investment **Total 100 100Agricultural 1.1 -6.0Mining 0.6 0.9Manufacturing industry 34.2 75.5Automotive industry 9.2 44.2Electronic equipment 3.4 10.0Electricity and water 0.9 0.1Construction 6.6 5.0Commerce 25.9 11.7Transport and communication 0.9 -1.0Financial services 3.7 0.6Others 26.1 13.0Source: Secretaría de Economía (Ministry of Economy), Dirección General de Inversión Extranjera Directa, DGIE;(http://www.economia.gob.mx/?P=1156)*In 2008 there were 348 Japanese companies.** Data refers to the distribution of accumulated FDI from 1999-2008.According to the total value invested, one of the main characteristics of the Japanese FDIin Mexico is its concentration in the manufacturing sector (75.5%), with a positive impacton employment, exports and technical training. According to research done by JETRO, theJapanese companies established in Mexico contribute three of every 100 formal jobs inthe manufacturing industry (JETRO-México 2004b). Within this sector, the automobile andelectric and electronic sub-sectors have received the greatest Japanese investment flows.On the other hand, according to information provided by JETRO and based on data fromCustoms agencies about the 100 largest exporting companies in Mexico, 13 Japanese companies4 have an important role in the exports to the US market, contributing to the surplusthat Mexico maintains with the latter country. As a result, Japanese companies have tendedto locate their plants in the border states of Baja California and Nuevo León, as well as thecenter region in the States of Aguascalientes and Morelos where two Nissan plants haveattracted more investors (Dussel Peters 2007; Almaraz 2007).In sum, in the period just before the EPA with Japan, the NAFTA was the spark that triggeredthe interest of Japanese FDI in Mexico and it coincided with the consolidation of liberalizationof the FDI in Japan. The proximity to the US consumer market was a key factor, as wasthe ability of the Japanese subsidiaries already established in the US to facilitate the integrationof Japanese companies in the region, taking advantage of the infrastructure, qualityand lower labor costs in Mexico. However, despite the positive impact of Japanese FDI on4. Nissan Mexicana (11), Matsushita TV (15), Sony Tijuana (24), Alcoa Fujikura (31), Pims (Mitsubishi) (44), Sony de Mexicali (45), HitachiConsumer Products (61), JVC Industrial (66), Sharp Electronica (67), Sony Nuevo Laredo (74), Honda de México (88), Toshiba Eletromex (96)and Sanyo Energy (100). The number in parenthesis indicates the place occupied by the company ( JETRO-México, 2004b).GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 36-54
Page 2 and 3: CARTA DEL EDITOR IN CHIEFEditor in
Page 5 and 6: StaffDe la Torre, José, Dean, Chap
Page 7 and 8: Staff2. MULTINACIONALES, INVERSIÓN
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Why isn’t Mexico on China’s Gro
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1081. IntroductionChina and Latin A
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Promote China-Latin American Relati
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1161. A Brief History of Economic r
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Building the New Silk Road across t
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Zhu HongboIn fact, some Latin Ameri
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Zhu Hongbo5. Conclusions135China an
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1. Introduction137China’s emergen
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Edy WongTable One: Compositions of
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Edy WongTable 2: China’s R & D Ex
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Edy Wongon ‘new economic geograph
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Edy WongIn today’s global market,
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Edy Wongdemand-side factors in the
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Edy Wongterms of quality, reliabili
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Edy Wongindustry. Second, value cha
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Edy Wongconsumption of Western luxu
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Edy WongReferences155Child, J.; Rod
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