Trade liberalisation in Mexico: Rhetoric and reality

Arbeitspapier

This paper examines the process of trade liberalisation in Mexico, particularly since the mid-1980s and the signing of the NAFTA agreement, and its impact on economic performance. The average growth of GDP of the Mexican economy since liberalisation has been only one-half the rate pre-liberalisation and we attribute this deteriorating performance to a rise in the income elasticity of demand for imports (partly associated with an increase in foreign direct investment with a high import content) which has not been compensated by a sufficiently fast growth of exports, leading to severe balance of payments difficulties. Mexican exchange rate policy has not helped the situation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Department of Economics Discussion Paper ; No. 04,03

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Trade Policy; International Trade Organizations ; Empirical Studies of Trade ; Current Account Adjustment; Short-term Capital Movements ; Economic Growth of Open Economies
• Subject: Trade liberalisation ; Economic growth ; Balance of payments ; Foreign direct investment ; Mexico ; NAFTA ; Außenhandelsliberalisierung ; Wirtschaftswachstum ; Direktinvestition ; Zahlungsbilanz ; Mexiko ; NAFTA-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pacheco-López, Penélope ; Thirlwall, Anthony P.
• Event: Veröffentlichung
• (who): University of Kent, Department of Economics
• (where): Canterbury
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/68127
• Last update: 10.03.2025, 11:46 AM CET