Carolina Fernandez
Research Mentor: Steven Samford
Mentor Department: Organizational Studies, LSA
Author(s): Not Available
Session: Session 2 (10:00 AM – 10:50 AM)
Presentation Type: Poster 58
Abstract
Research on economic development often examines successful cooperation between governments and domestic firms. However, much of the literature on Latin America argues that these relationships are less conducive to economic growth. Mexican governments, for example, are often described as facing two related problems: foreign investors are assumed to “footloose†and avoid political engagement, while domestic firms are supposedly most occupied protecting existing activities rather than upgrading to increase competitiveness. Consequently, neither group is deemed a reliable state partner when regarding technological and skill development. This project questions whether that characterisation is accurate, particularly observing whether the factors that make foreign investment in Mexico difficult to exit also increase international firms’ willingness to engage in constructive, collective politicking through trade associations. To examine this question, the study focuses on industry and trade associations as key arenas in which state–business relations take shape. It draws on existing quantitative data on the size and composition of trade associations, including the relative presence and dominance of domestic versus international firms. This is complemented by an association-level survey of approximately 100 economically significant business organisations, including sector-specific national chambers associations. The survey examines cooperation toward industrial and political goals, covering membership composition and change over time, organisational structure and decision-making, and patterns of engagement with governments, regulators, and training institutions. Additionally, the project develops five quantitative indicators to measure the degree of investment stickiness in Mexico that are predictive of long investment horizons, allowing for systematic comparison across firms and industries. While results are still in progress, the finding will explain whether international firms’ participation reflects long-term commitments shaped by sticky investments and instrumental strategies of influencing regulation. More broadly, the project sheds light on how state–business collaboration emerges in contexts where cooperation is often assumed to be limited and implications for economic development outcomes.
