Outward FDI effects in Emerging Economies: The Curious Case of Skill Downgrading at Home in Mexican Regions
When companies from emerging economies expand overseas, we usually expect their home country to benefit too. This podcast takes us to Mexico, where the evidence reveals a surprising downside: investment in richer countries can reduce the demand for higher-skilled workers back home, at least in the short run. It is a fascinating story about how going global can create winners abroad while producing unexpected consequences at home.
Citation: Ibarra-Olivo, J.E. (2026). Outward FDI effects in emerging economies: the curious case of skill downgrading at home in Mexican regions. Journal of…
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