{"id":210,"date":"2026-08-31T15:12:42","date_gmt":"2026-08-31T22:12:42","guid":{"rendered":"https:\/\/dornsife.usc.edu\/palmer-rubin\/?page_id=210"},"modified":"2026-08-31T15:12:43","modified_gmt":"2026-08-31T22:12:43","slug":"escaping-the-middle-income-trap-multinational-firms-and-the-politics-of-upgrading-in-mexico","status":"publish","type":"page","link":"https:\/\/dornsife.usc.edu\/palmer-rubin\/escaping-the-middle-income-trap-multinational-firms-and-the-politics-of-upgrading-in-mexico\/","title":{"rendered":"Escaping the Middle-Income Trap: Multinational Firms and the Politics of Upgrading in Mexico"},"content":{"rendered":"\n\n  \n    \n\n\n\n\n\n\n<div\n  class=\"cc--component-container cc--rich-text \"\n\n  \n  \n  \n  \n  \n  \n  >\n  <div class=\"c--component c--rich-text\"\n    \n      >\n\n    \n      \n<div class=\"f--field f--wysiwyg\">\n\n    \n  <div style=\"display:flow-root;\">\n<p>Brian Palmer-Rubin, <a href=\"https:\/\/www.marianarangelpadilla.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mariana Rangel Padilla<\/a>, <a href=\"https:\/\/sites.lsa.umich.edu\/stevensamford\/\" target=\"_blank\" rel=\"noopener noreferrer\">Steven Samford<\/a><br \/>Book project \u00b7 Working title<\/p>\n<p>Foreign investment can bring jobs, technology, and access to international markets. But attracting multinational firms does not automatically produce lasting development. Some firms build connections that strengthen local suppliers, workforce skills, and productive capabilities. Others remain disconnected from the surrounding economy or reinforce low-wage, low-value production.<\/p>\n<p>This book project asks when multinational firms become partners in economic upgrading\u2014and what makes that cooperation possible.<\/p>\n<p>Mexico offers a revealing setting. Deep integration with North American markets has brought sustained multinational investment, yet industries differ substantially in how that investment connects to domestic firms, institutions, and development priorities.<\/p>\n<p>The project combines research on firms and business associations with executive surveys, interviews, and comparative sectoral analysis. Its scope includes auto parts, electronics, steel, textiles, and agricultural exports.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/dornsife.usc.edu\/palmer-rubin\/wp-content\/uploads\/sites\/510\/2026\/08\/enlace-logo.png\" alt=\"ENLACE research lab: University of Southern California, University of Michigan, and Tecnol\u00f3gico de Monterrey.\" style=\"float:right;width:260px;max-width:calc(100% - 24px);height:auto;margin:0 0 24px 24px;\" \/><\/p>\n<h2><a href=\"https:\/\/sites.lsa.umich.edu\/enlace\/\" target=\"_blank\" rel=\"noopener noreferrer\">ENLACE<\/a>: Collaborative Research and Training<\/h2>\n<p><a href=\"https:\/\/sites.lsa.umich.edu\/enlace\/\" target=\"_blank\" rel=\"noopener noreferrer\">ENLACE<\/a> is the multi-campus research lab through which we develop this project and related research on multinational corporations and development in Mexico. It connects researchers and undergraduate research assistants at the University of Southern California, the University of Michigan, and Tecnol\u00f3gico de Monterrey.<\/p>\n<p>The lab combines collaborative research with hands-on training in research design, data analysis, and writing. Students contribute to shared projects while developing substantive research of their own. Cross-campus collaboration brings different perspectives and local knowledge into a common research agenda.<\/p>\n<p><a href=\"https:\/\/sites.lsa.umich.edu\/enlace\/\" target=\"_blank\" rel=\"noopener noreferrer\">ENLACE<\/a> is both a foundation for the book\u2019s research and a longer-term space for studying North American political economy.<\/p>\n<h2>Regional Integration and Domestic Development<\/h2>\n<p>Mexico belongs to a broader group of middle-income countries\u2014including Poland and Vietnam\u2014whose development is closely tied to regional production networks and foreign investment. These countries attract multinational firms, but differ in how they harness that investment to advance domestic development plans.<\/p>\n<p>We situate Mexico within this wider landscape to ask how governments, domestic businesses, and multinational firms turn international integration into stronger local suppliers, skills, and technological capabilities. The challenge is not simply to attract investment, but to connect it to domestic development priorities.<\/p>\n<h2>Varieties of MNC Embeddedness<\/h2>\n<p>We draw on the sociological concept of embeddedness to understand how multinational firms\u2019 activities are shaped by the relationships in which they operate. We distinguish economic ties through investment and production, institutional ties to business associations and public agencies, and social ties among executives and other local actors. These different forms of embeddedness help explain how MNCs engage with Mexican market and state institutions\u2014and when that engagement supports domestic upgrading rather than privileged access or exclusion.<\/p>\n<h2>Related Publications<\/h2>\n<p><strong>Embedded Multinationals: When MNCs Choose Voice Over Exit<\/strong><br \/>With <a href=\"https:\/\/sites.lsa.umich.edu\/stevensamford\/\" target=\"_blank\" rel=\"noopener noreferrer\">Steven Samford<\/a>.<br \/><em>World Politics<\/em> 79(1), 2027 (forthcoming). <a href=\"https:\/\/dornsife.usc.edu\/palmer-rubin\/wp-content\/uploads\/sites\/510\/2026\/08\/Palmer-Rubin-Samford-Embedded-Multinationals.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"PDF: Embedded Multinationals: When MNCs Choose Voice Over Exit (opens in a new tab)\">PDF<\/a><\/p>\n<h2>Work in Progress<\/h2>\n<p><strong>Embedded Capital: Multinational Firms, Business Associations, and the Politics of Upgrading in Mexico<\/strong><br \/>With <a href=\"https:\/\/www.marianarangelpadilla.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mariana Rangel Padilla<\/a> and <a href=\"https:\/\/sites.lsa.umich.edu\/stevensamford\/\" target=\"_blank\" rel=\"noopener noreferrer\">Steven Samford<\/a>.<\/p>\n<\/div>\n\n\n\n<\/div>\n\n\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1200,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-210","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - 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