Technological determinants and investment decisions: a Mexican manufacturing industry analysis

Abstract

The influence of technological determinants on the investment decisions of Mexican manufacturing firms is discussed in this work. Efficiency estimates obtained from the Data Envelopment Analysis (DEA) and technology indicators for the regressions through Ordinary Least Squares (OLS) are used to develop the study. The analysis is based on cross-sectional data. Empirical evidence suggests that the technological efficiency that arises from productive factors (capital and labor) may encourage investment.