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High‐Profile Attacks, Regimes of Criminal Governance and Foreign Direct Investment in Mexico

Datos Bibliográficos

ID21543527
AutoresJ Eduardo Ibarra‐Olivo (0000-0002-3873-2886, Henley Business School University of Reading Reading UK, autor de correspondencia), Sandra Ley (0000-0001-8141-9273, Tecnologico de Monterrey Ciudad de México Mexico), Covadonga Meseguer (0000-0002-8469-3988, ICAI‐ICADE Universidad Pontificia Comillas Madrid Spain)
Año2025
Volumen48
Número7
Páginas1732-1752
Fecha de publicación2025-07-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaWorld Economy (JOURNAL)
Identificadores de la revistaISSN: 0378-5920 • E-ISSN: 1467-9701
EditorialWiley (PUBLISHER • GB)
DOI10.1111/twec.13723
OpenAlexW4410522830
IdiomaEN
Referencias citadas50

This paper examines the influence of high‐profile attacks (HPAs) on foreign direct investment (FDI) in Mexican municipalities. HPAs target political officials and signal attempts by organised criminal groups (OCGs) to dominate the local organisation of the communities under their influence. Such efforts to establish criminal governance controls can potentially create a stable environment conducive to FDI. Using a data set on HPAs and analysing their impact on sectoral FDI at the municipal level between 2007 and 2013 in Mexico, we find that HPAs do not discourage foreign investment. However, this effect depends on whether the establishment of criminal governance occurs amid widespread violence. Under conditions of generalised violence, the stabilising influence of HPAs has a negative effect on FDI, especially in the commerce and service sectors. Our findings offer new insights into the conditions under which organised crime affects FDI, contributing to an ongoing debate

Business · Corporate governance · Criminology · Economics · Foreign direct investment · Organised crime · Political economy · Political science · Politics · Corruption and Economic Development · Crime, Illicit Activities, and Governance · Cybercrime and Law Enforcement Studies · Law · Psychology · Finance

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