A series of economy reforming based on Neoliberalism was initiated in Mexico since 1980, which included lower limitation of foreign direct investment (FDI), privatization, improving domastic economy structure and attracting foreign investment. Eventually, Mexico had turned into one of the major investing destination of foriegn investors since year of 2000, and the Maquiladora Decree had played an important role in it. With this decree, Mexico had sucessfully attracted the inflow of foreign capital and investment, which brought a series of positive effections to its economy development.
Although the propose of multinational corporations (MNCs) to invest Mexico was for their own interest, several results had shown the possitive effections from foriegin investment to Mexican economy development, e.g., increasing employment, promoting trade balance and inducing new technologies...etc. In addition, relevant theories also point out that MNCs can be the channel for those recipient conutries to obtain new technologies. In short, this decree had becoming an indispensible factor for Mexico to attract foriegn investment since 1965.
This thesis is focusing on the effects of FDI to mexican maquiladora industry, and intended to explain such phenomenon through relevant theories and practices of FDI; moreover, it also discussed the elements that promote FDI and the influence to the recipient countries based on the international trade theories, particularly the Eclectic Paradigm Theory. This research also studied the concept and development process of maquiladora industry, and analyzed the influences of North America Free Trade Agreement (NAFTA) and domestic rules / acts / laws of Mexico to its maquladora industry. After all foregoing studies, this thesis attempts to analysis the industrial upgrading of maquiladora and also the effects of diffusion of technology and productive processes. In sum, this research concluded that the MNCs are conducive to the economy development of Mexico, despite of the low wage it pays and the pollution it generated.