What is the significance of Foreign Direct Investment?
Foreign Direct Investment (FDI) is a key characteristic of international economic integration. The importance of FDI to a host country is that it brings additional capital, creates jobs, encourages transfer of technology and know-how, and contributes to a wider promotion of products on international markets. Benefits to investor countries include access to an expanded labor force, and wider promotion of promotion of products in international markets. Mexico ranks among the top developing countries in the attraction of foreign investors seeking to expand into the NAFTA area. One of Mexico’s principal advantages over other developing countries is the proximity and access to U.S. and Canadian markets. The geographic distribution of FDI among states within Mexico is influenced by several factors including population levels, wages, educational attainment, adequacy of infrastructure, and proximity to the U.S. Accordingly, the trend in FDI at state level can be viewed as a composite indicator of that state’s attractiveness for multinational activity. From the perspective of Mexico as a host country, FDI is an international venture in which a foreign investor acquires a long-term controlling influence in the management and operation of an affiliate firm in Mexico. A common way of presenting FDI is as an aggregate nominal value of the inward flows and stock values.
What is measured?
Foreign Direct Investment (FDI) represents an aggregate nominal value of inward investment dollars and stock values. Data presented in U.S. dollars.
How competitive is Sonora?
To gauge Sonora’s relative competitiveness in attracting Foreign Direct Investment (FDI), key dynamics are compared with other Mexican border states in terms of relative measures such as percentage shares. Data are provided on annual bases with indices of percentage change between observed periods.
The table on this page summarizes Foreign Direct Investment in Mexico Border States. Data are updated following release by the National Institute for Statistics and Geography (INEGI). Click any title in the table to graph that series and export, or choose "download" at the base of the table to download the entire dataset.
Special note on FDI data: As of December 31, 2015 data on foreign direct investment (FDI) released by the Instituto Nacional de Estadistica y Geographia (INEGI) are computed using a new method that accounts for new investment, re-investment and inter-company debt transactions. FDI values prior to 2015 have been revised according to this new method. For this reason, new data on FDI released on this site may be different from totals released prior to December 31, 2015. For more information on INEGI's new accounting method for FDI please visit the INEGI website .
Instituto Nacional de Estadistica y Geografia (INEGI) . National Institute of Statistics and Geography, System of National Accounts of Mexico. Banco de Informacion Economica.
Photo of Mexico high resolution invest concept courtesy of Shutterstock.
Photo of Mexico world map with pixel diamond texture courtesy of Shutterstock.