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This paper examines the short and long-run relationships between Foreign Direct Investment (FDI), Trade Openness and GDP in China, India and Mexico from 1980 to 2011. Based on the properties of individual time series data, the paper estimates the VAR or VECM of the three variables to determine short and long-run causal relationships. The results confirm the existence of long-run causal relationships between the three variables for China and Mexico. The results also point to sharp differences in short-run causal relationships in the three countries and several plausible explanations consistent with the findings are offered. [ABSTRACT FROM AUTHOR]

The aim of this paper is to examine the effect of economic openness on wage dispersion. To this end, using a fixed effects panel model, we evaluate the impact of exports and foreign direct investment (FDI), as well as productivity and education, on wage dispersion in 14 economic subsectors in Mexico during the period 1999-2021. The main findings show that: i) increasing exports tend to diminish wage dispersion; ii) the flow of FDI seems to increase wage dispersion; iii) productivity and the heterogeneity of the productive network are determining factors in the dynamics of average wages. In this context, it is important to implement a variety of industrial and labour policies to effectively absorb the dynamic advantages associated with economic openness, such as the reduction of wage dispersion. [ABSTRACT FROM AUTHOR]

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The goal of this paper is to test alternative explanations of slow growth in the Mexican economy. There are two groups of explanations: The first, closer to the government's position, considers the cause to be the lack of completion of structural reforms, in particular: liberalization of the labor market and foreign investment, and full privatization of the oil sector. The second, proposed by academics and independent economic research centers underlines the negative effect of the neoliberal fiscal and monetary policy applied in the Mexican economy for the past thirty years. In the academic debate held by this second group of economists there is a belief that, directly or indirectly, poverty and the income concentration are related to Mexico's weak growth performance. This article, grounded in post Keynesian and Kaleckian theory, uses econometric models to provide evidence that the principal cause of the slow growth of the Mexican economy is income concentration, and concludes that the strategy of neoliberal policies applied in the past thirty years have been self-defeating: By favoring corporate profits and high income classes, it neglected the domestic market and social welfare. The result is that the growth capacity of domestic effective demand has deteriorated, which explains the low level of the national growth rate. [ABSTRACT FROM AUTHOR]

The recent reform of Mexico's energy sector, underway since 2013, is the culmination of several decades of liberalization policies that aimed, in large part, to denationalize Mexico's petroleum industry and open the sector to investment from private foreign firms. In reversing the nationalization of Mexico's oil industry in 1938, this reform has significant implications for the triumph of neoliberal globalization in the Global South, even in a period of rising protectionism in the Global North. Both the United States and Canada played a significant role in promoting the reform of Mexico's energy sector and in structuring the legislative changes that reopened Mexico's hydrocarbon resources to foreign control. Over the past two years, Canadian firms have benefited significantly from new pipeline and oil and gas contracts in Mexico. Taking a legal-geographical approach, this paper examines Canadian involvement in the restructuring of Mexico's oil and gas sector, both spatially (through proximity, interests, and influence in the North American energy market) and legally. The legal component operates through a form of juridical pluralism, in which the institutions of contemporary economic globalization, including the Canadian state, participate in legislative and regulatory changes in the Mexican oil industry. [ABSTRACT FROM AUTHOR]

This paper formulates a static applied general equilibrium model of a small open economy and then calibrates it to the Mexican input–output matrix for 1987. We use the calibrated model to quantify how much of the dramatic rise in the skill premium over the period 1987–1994, following the liberalization of the trade policy in Mexico, can be accounted for by the change in the extensive margin of trade or trade variety. Our numerical experiments show that the increase in the extensive margin of Mexican manufactured trade with the U.S. can account for up to approximately 12 percent of the actual increase in skill premium in Mexico from 1987 to 1994. [ABSTRACT FROM AUTHOR]

Copyright of Latin American Policy is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article analyzes how the relations between Mexico's private sector, particularly that of business power groups and interest groups, and the political elite changed as a result of processes of neo-liberalization and democratization from the early 1980s through the presidency of Vicente Fox (2000-2006). The analysis provides several insights into Mexico's developing interest group system during these years and particularly that of business interests. On the one hand, the changes increased political pluralism, the number of groups operating, and their lobbying options and helped move Mexico toward liberal democracy. On the other hand, with its major resources and political connections, big business was able to maintain, in fact enhance, its political status, whereas small business was less politically successful. Moreover, many old political practices used by big business to influence government persist as well as skepticism among the public regarding democratic institutions. As a consequence, this article argues that despite the new developments in political advocacy, the continuation of traditional political practices presents obstacles to the development of interest group activity resulting in a plutocratic element to Mexico's emerging democracy. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]