This chapter analyses the Multinationals corporations in Mexico, particularly theirlinkages with small and medium enterprises. Mexico has been an important magnet offoreign direct investment (FDI), particularly during the last forty years of the lastcentury. The FDI has played a very important...

Governments in developing (and developed) countries spend large sums to attract foreigncompanies (e.g. $300,000 per job created in Brazil). But there is only one welfarejustification for subsidizing MNCs: that they generate spillover effects. Yet, most of theempirical literature has not...