Edward Conard

Top Ten New York Times Bestselling Author

  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
Upside of Inequality Oxford Unintended Consequences

AI Summary. Foreign-held assets in Mexico, including foreign direct investment, have declined relative to Mexico's GDP, with new foreign direct investment falling to a 10-year low despite attention to nearshoring. Reinvested earnings now make up most inflows, and manufacturing absorbed nearly half of total foreign direct investment.

Enrique Martínez García, Manuel Sánchez and Luis Torres Federal Reserve Bank of Dallas
Date Posted:

A @DallasFed analysis finds that foreign investment in Mexico has declined as a % of GDP since 2022. The impact of “nearshoring” on Mexico’s economy has been limited, as “large-scale foreign capital relocation has yet to materialize.”

Has nearshoring attention translated into new foreign investment in Mexico?

Core argument: Mexico's new FDI has fallen to a 10-year low since 2022, and international investment position data show foreign-held assets including FDI relative to GDP have declined over the same period.

Despite the increased attention to nearshoring, foreign-held assets (including FDI) relative to Mexico’s GDP have declined since 2022, international investment position data show. While new FDI surged immediately following the pandemic-era recession, new FDI since 2022 has declined to a 10-year low. Foreign capital inflows from company parent accounts and non-FDI portfolio investments have also been limited. Reinvested earnings now account for most FDI inflows, reflecting a shift toward building additional capacity from own resources. The manufacturing sector absorbed nearly half of total FDI between early 2022 and mid-2024, with key contributions from the transportation equipment, food processing and metals industries. The U.S. remains Mexico’s largest source of FDI.

Takeaways by Macro Roundup® AI

  1. Mexico's new FDI has fallen to a 10-year low since 2022, and international investment position data show foreign-held assets including FDI relative to GDP have declined over the same period.
  2. Reinvested earnings account for most of Mexico's FDI inflows, reflecting a shift toward building additional capacity from own resources, while inflows from company parent accounts and non-FDI portfolio investments have been limited.
  3. Manufacturing absorbed nearly half of Mexico's total FDI between early 2022 and mid-2024, with key contributions from transportation equipment, food processing and metals, and the U.S. remains Mexico's largest source of FDI.

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Showing 56 database articles primarily about Trade (not deficits)