The retention factors of the maquila: Lesson Yucatán (1995-2005) *

Abstract

Foreign direct investment in the Mexican industrial sector (as maquiladoras) is examined in this paper in terms of its quest for “ideal conditions†and its propensity to stay in Mexico despite the growing Chinese competition. In the Mexican south-east, the state of Yucatán provides an example of a state that had success in retaining the majority of its foreign-owned plants. After qualifying for best localizing factors to first attract foreign capital, while facing a potential outflow of foreign capital, local Mexican governments try to device new ways of retaining investors.