Japanese Direct Investment in Mexico's Transport Equipment Sector (eBook)

Melba Falck Reyes is Professor-Researcher, Pacific Studies Department, University of Guadalajara. She received her Ph.D. in Transpacific International Relations from University of Colima, México and her M.A. and Ph.D. candidacy in Economics from University of Colorado, USA. Her area of research is International Economics and Japan-Mexico economic relations. She is member of the National System of Researchers in Mexico.She participated in the Study Group of Japan-Mexico Economic Parterniship (2001). She had been visiting professor at the Institute of Developing Economies and at Kyoto University in Japan. She coordinated two series of books on Asia-Pacific and has authored articles in specialized journals, chapters on books and co-edited several books. She received a Commendation from the Ministry of Foreign Affairs of Japan for the Promotion of Mutual  Understanding between Japan and Mexico (2015).Leo Guzman-Anaya obtained his Master Degree in Economics in 2008 from Tokyo International University, Japan, and his Ph.D. in Economics and Management Science from the University of Guadalajara, Mexico. Main research interests are focused on inter-industrial spillover effects and localization factors associated to Japanese Foreign Direct Investment in Mexico. He has been a visiting researcher at Sophia University and Seijo University in Japan and has authored several articles and book chapters related to Japanese FDI in Mexico. He is currently a Level-1 member of the National System of Researchers in Mexico.Emma Mendoza Martínez obtained her Ph.D and M.A. in Japanese studies by El Colegio de Mexico. Main research interests have been focused on social movements in Japan, decision-making process of nuclear power policies in Japan, Japanese migration to Mexico at the beginning of twentieth century, and Japanese investment in the automotive sector in Mexico and the implications for the local economy. She has been invited researcher at Hokkaido University and Osaka University and carried out research stays in other universities in Japan. She was editor of the book Collective Action in Asia and Latin America, and has been coordinator of Japan Section of Asociación Latinoamericana de Estudios de Asia y África (ALADAA).Maria Guadalupe Lugo-Sanchez received her Master Degree in Business and Economic Studies in 2011 from the University of Guadalajara, is Ph.D. candidate of the program of Public Policies and Development from the University of Guadalajara, Mexico. Main research interest is Economic Policy and trade between Japan and Mexico. Has participated as a speaker at seminars at Seijo University in Tokyo, Japan, and participated in academic activities related with the promotion of research with private companies, government agencies and Universities.

Preface 6
Contents 8
Abbreviations 9
List of Figures 13
List of Tables 17
Chapter 1: Introduction: Relevance of the Transport Equipment Sector in Mexico 18
1.1 The Transport Equipment Sector in Mexico 18
1.2 Japanese Foreign Direct Investment in Mexico: The Transport Equipment Sector 20
1.3 Purpose and Structure of the Book 23
References 25
Chapter 2: Japanese Foreign Direct Investment in Mexico’s Transport Equipment Sector. The Macro Impact: Regional Networks of Production and Trade 26
2.1 Introduction 26
2.2 Fragmentation of Production Theory 28
2.3 Trade Balance and Investment: Two Sides of the Same Coin 29
2.4 The Boom of Japanese Investment in Mexico 31
2.5 How Japanese Affiliates Are Operating in Mexico? 34
2.6 Empirical Evidence: Influence of Japanese FDI in Mexico’s Flows of Trade and Regional Networks of Production 37
2.7 Major Challenges for Mexico Under the New Scheme of Production Networks 42
2.8 Conclusions 44
References 45
Chapter 3: Locational Determinants of Japanese Automotive FDI in Mexico: A Spatial Analysis 47
3.1 Introduction 47
3.2 JFDI in Mexico 48
3.3 Regional Characteristics and Location Choice 50
3.3.1 Location Choice and FDI 50
3.3.2 Location Choice and JFDI 51
3.3.3 Location Choice and Automotive JFDI 54
3.4 Methodology 56
3.4.1 Data Sources 56
3.4.2 Variables 57
3.4.3 Econometric Model 58
3.5 Estimation Results 59
3.6 Conclusions 66
References 68
Chapter 4: Spillovers of Japanese Automotive Companies’ Activities in the State of Aguascalientes 70
4.1 Introduction 71
4.2 The Establishment of Nissan in Aguascalientes 73
4.2.1 First Nissan Suppliers 74
4.3 Economic Benefits Generated by the Establishment of the Automotive Industry in Aguascalientes 75
4.4 Current Development of the Automotive Industry in Aguascalientes and the Role Different Actors Play in the Process 77
4.4.1 Programs Established by the Mexican Government 77
4.4.2 The Role of the Japanese Government in the Establishment of Mexican Suppliers 81
4.4.3 The Role of Universities and Research Centers 83
4.4.3.1 Universities 83
4.4.3.2 The Role of Research Centers 84
4.5 Link Between FDI Companies and Local Suppliers. The Case of Tachi-S with MICSA (Later MAEN) 87
4.6 Nissan’s Presence in Aguascalientes as a Factor of Specialization for the Bajio Region 89
4.7 Conclusions 90
References 92
Interviews 95
Chapter 5: The Role of Public Policies in Attracting Japanese FDI in Mexico 96
5.1 Introduction 96
5.2 Literature Review 99
5.3 Japanese FDI in the Automotive Industry in Mexico 101
5.4 Public Policies, the States and Their Role in Attracting Japanese FDI 104
5.5 Conclusions 114
References 115
Chapter 6: The Impact of Japanese Training Programs on Local Automotive Suppliers’ Productivity in Mexico’s State of Guanajuato 117
6.1 Introduction 117
6.2 Literature Review 120
6.3 Background 121
6.4 The Project for Automotive Supply Chain Development in Mexico (PASCDM) 124
6.5 Overall Results from the PASCDM 126
6.6 Results from the PASCDM for the Case of Guanajuato 132
6.7 Conclusions 138
Appendix (Tables 6.12 and 6.13) 143
References 146