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Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas 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.)

Copyright of Realidad Economica is the property of Realidad Economica 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.)

Copyright of Revista Nicolaita de Estudios Económicos is the property of Universidad Michoacana de San Nicolas de Hidalgo 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.)

In this paper, we follow Bresser-Pereira et al. (2021) and estimate for Mexico a a series of the real exchange rate (RER) that balances the current account for Mexico for the period 2001q1-2019q4. In this process we take into account numerous determinants, including policy variables and financial indicators the evolution of the terms of trade, as well as a proxi for the Balassa-Samuelson effects, inter alia. Our results show that in most of the period analyzed there has been a trend tendency towards overvaluation, with the RER fluctuating above its equilibrium level. With cointegrating methods, and dynamic ordinary least squared (DOLS) techniques, we examined the effects of exchange rate under and overvaluation on manufacturing; disaggregated in three sectors: i) technology intensive, ii) natural resource intensive and iii) labor intensive activities. Overall, our results indicate that the real exchange rate has a significant influence on the rate of expansion of Mexico's manufacturing real GDP. [ABSTRACT FROM AUTHOR]

This paper estimates a structural model of the balance of payments, with disaggregated exports (manufactures and other) and imports (final and intermediate), and a reduced-form model of the trade balance for the Mexican economy. The analysis identifies structural changes in the composition of Mexico's trade and the parameters that affect it across five subperiods marked by statistical breakpoints. The results indicate that a tightening of the balance-of-payments constraint may account for the post-liberalisation slowdown in Mexico's growth only during certain subperiods and that the impact of real exchange rate changes on the trade balance has diminished, most likely as a result of the increasing integration of export industries into global supply chains. The results also suggest an asymmetry, whereby a country cannot sustain growth above the rate consistent with balance-of-payments equilibrium, as expected, but it can grow persistently below that rate when other constraints are more binding. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas 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.)

Copyright of Interventions Économiques is the property of Association d'Economie Politique 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 paper analyses the liberalisation of foreign direct investment (FDI) in Mexico since the late 1980s, and its relationships with exports and imports. Such a process has eased the access of multinational corporations (MNCs) to the country, which has promoted exports. However, it has also resulted in a higher import content and the displacement of local firms, which has limited Mexico's economic development through the balance of payments constraint. The analysis is supported by the existence of linkages – bidirectional Granger causality – between exports, imports and FDI. [ABSTRACT FROM AUTHOR]

This paper applies the basic balance-of-payments constraint model (BPCmodel), developed by A.P . Thirlwall, to the analysis of Mexico's economic growth in 1950-96.With the use of unit-root tests and cointegration analysis it estimates the long-run association between the growth of Mexico's real exports and real output in 1950-96, and selected subperiods. The results tend to show significant and positive cointegration between these two variables, thus giving support to the BPC-model as a relevant hypothesis to explain Mexico's long-term economic growth. Moreover, the findings of cointegration tests for selected subperiods suggest that the slowdown in its economic growth since 1982 is associated with an increase in the long-term income elasticity of imports that made more binding the balance-of-payments constraint on the expansion of domestic output. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Economía Institucional is the property of Universidad Externado de Colombia 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.)

The aim of this paper is to disentangle the effects of trade liberalization during the mid-1980s from the liberalization involved in the North American Free Trade Agreement (NAFTA) on exports, imports, and the balance of trade in Mexico. The main empirical results suggest that the trade reforms during the mid-1980s had a significant effect on trade, exports, and imports; however, the effects of NAFTA, at least on exports, are negligible. Since the mid-1980s, the propensity to import has exceeded the propensity to export, and this has worsened the growth rate consistent with balanced trade, which is a major explanation of the slowdown of Mexico's growth in recent years. NAFTA has not delivered the improved growth performance that was promised by Mexico's political leaders at the time. [ABSTRACT FROM AUTHOR]

This paper examines the recent financial debacle in Mexico and its effects on other emerging markets (the Tequila effect). I argue that financial and liquidity considerations--as opposed to current account sustainability or real exchange rate considerations--appear to have played a prominent role. Special attention is given to financial factors in Latin America. On this basis it is concluded that Mexico and Argentina were particularly vulnerable to speculative attacks. For contrast, the experience of Austria is examined and compared with that of Mexico. The analysis suggests that the remarkable stability of Austria--which pegged its currency to the Deutsche Mark for more than 15 years--may be due to the low volatility of its monetary aggregates. I also argue that financial factors could account for multiple self-fulfilling equilibria, helping to explain the sudden and deep reversals in Mexico and Argentina. It concludes with a discussion on policy implications. I suggest that, aside from the usual fiscal prudence advice, countries should pay special attention to the banking system and the maturity of public debt. Furthermore, the appropriateness of an exchange rate regime should take into account the characteristics of the financial sector. [ABSTRACT FROM AUTHOR]

While there is common agreement that Mexico's industrialization period was helped by a protective commercial policy, there has been little testing of this hypothesis. This paper investigates the possibility that Mexico may have used her changing tariff postures not to provide aid for her growing industries but rather to improve either her terms of trade, her revenues or her balance of payments during the 1930-1965 period. The research shows that except for isolated instances none of the individual arguments examined, nor their combination, could explain Mexico's tariff policy. It is therefore concluded that tariffs for protection were employed to achieve industrial development. [ABSTRACT FROM AUTHOR]

Abstract: Previous studies have found that a tightening of the balance of payments (BP) constraint can explain the slowdown in Mexico's growth after its trade liberalization in the late 1980s. This paper develops a disaggregated model of the BP constraint with two types of exports (manufactures and primary commodities) and two types of imports (intermediate and final goods). Econometric estimates (including tests for structural breaks) show that the BP-equilibrium growth rate did not fall, but instead rose in the post-liberalization period, so this model cannot account for the country's growth slowdown. Instead, the analysis points to the need to consider the real exchange rate as well as internal obstacles and policies. [Copyright &y& Elsevier]

The remittances sent by Mexican migrants in the USA are relevant for recipient household at least in two senses. First, they contribute to rise income, and therefore to diminish poverty level. Second, they also contribute to regional and local economic development via the multipliers generated by the increases of the demand and of the investment in productive activities. Nonetheless, there are several estimations of household remittances magnitude. This paper analyzes the methodologies of Banco de Mexico (Mexican central bank) and those of recognized researchers. There is no consensus regarding the amount of money transferred by Mexican migrants in the USA. Consequently, the positive effects upon the recipient economy may not be conclusive. [ABSTRACT FROM AUTHOR]

Copyright of Papeles de Población is the property of Universidad Autonoma del Estado de Mexico 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.)

The remittances sent by Mexican migrants in the USA are relevant for recipient household at least in two senses. First, they contribute to rise income, and therefore to diminish poverty level. Second, they also contribute to regional and local economic development via the multipliers generated by the increases of the demand and of the investment in productive activities. Nonetheless, there are several estimations of household remittances magnitude. This paper analyzes the methodologies of Banco de Mexico (Mexican central bank) and those of recognized researchers. There is no consensus regarding the amount of money transferred by Mexican migrants in the USA. Consequently, the positive effects upon the recipient economy may not be conclusive. [ABSTRACT FROM AUTHOR]

Numerous applications of the balance-of-payments-constrained growth (BPCG) model have concluded that Mexico's equilibrium GDP growth rate fell after trade liberalization, because of a sharp rise in the income-elasticity of imports. Following the bounds testing approach of Pesaran et al. (), the present note estimates equations for intermediate and other types of imports in Mexico from 1960 to 2006. It shows that intermediate imports are significantly affected by manufactured exports, and that once the effect is controlled for, there is no significant rise in their income-elasticity-in contrast to what is observed for other types of imports. Since manufactured exports are highly intensive in imports, what the typical BPCG regression detects as an increase in the elasticity of intermediate imports may reflect a compositional effect, namely, the re-composition of GDP towards exports. Some implications for the BPCG model are briefly discussed in the conclusions. [ABSTRACT FROM AUTHOR]

Presents charts and graphs on short-term economic indicators of several member countries of the Organisation for Economic Co-operation & Development from 2000 to 2004. Gross domestic product of Canada; Balance of payments of Mexico in 2003; Exports and imports of the U.S.

This article focuses on the Mexican Peso crisis. Notwithstanding the highlighted structural problems, the Banco de Mexico and a number of analysts have pointed out that fundamentals cannot account fully for the Mexican peso crisis. The Mexican crisis did not exhibit a traditional balance-of-payments crisis namely, excessive expansive monetary and fiscal policies. Indeed, Mexico's budget was broadly balanced at no more than percent of gross domestic product (GDP) in 1994. Also, inflation and monetary growth were moderate. Furthermore, the standard models of speculative attacks cannot fully account for the magnitude and severity of the peso crisis. These considerations have led some to conclude that the peso crisis was akin to a self-fulfilling bank run. Specifically, it is argued that although the tesobono stock totaled only about 10 percent of the GDP in 1994, it was large relative to the Bank of Mexico's reserves, and hence vulnerable to a self-fulfilling run. The December 20 devaluation made the investors overreact and pull their money out. Thus, it was this creditor panic and resultant herd behavior that greatly exacerbated the problem.

This paper analyses the effects of exogenous changes in the terms of trade on short term fluctuations of the balance of payment in Mexico (concerning a monetary approach and a fixed exchange rate), during 1948-1984. Variations in the terms of trade are here stated to repercuss on transformations of real activities and through them on the demand for real balances and on the balance of payments. A wide description and use of Granger and Sims techniques are made in the document to prove the causal patterns of a double variable system (domestic monetary variables and inflation) given the implicit assumption of the model that considers the exogenous character of the inflation rate with regard to the domestic monetary variables. The results obtained from the model allow to stress the importance of and concern for variations in the terms of trade concerning the real activity as well as the balance of payment. [ABSTRACT FROM AUTHOR]

This article describes the outstanding features of the economic behavior and of the nature of economic policy in Mexico since World War II, focusing on topics such as the agricultural sector, the industrial sector, the distribution of income, the financial system, the public finances and the balance of payments, as of June 1971. The agricultural sector has provided many of the outstanding features of the economy of the country. This sector absorbs 50 percent of the labor force and contributes less than 20 percent of the value added in the production process. Even prior to the drastic changes in agricultural production and in the yields per hectare, which permitted the growth of exports and secured the necessary foreign exchange for imports of machinery and equipment, industrial development has been the primary goal of economic development policy since World War II. In the last three decades, however, while Mexico has undergone a process of sustained economic development that has permitted output per capita to increase from 75 dollars in 1940 to 560 dollars in 1968, there have been indications that the process of development itself has engendered inequalities in the income received by the various segments of the population. In the last ten years, the Mexican financial system has experienced a sustained and steady development, as a result of the growing volume of savings. Mexican fiscal policy has had the following main objectives, the determination of a desirable composition of government spending in consumption and investment, the extension of services and assistance lent by the State to the community, spreading educational, medical and social welfare services to the population, the use of tax incentives to foster saving and private investment, making the tax burden more comprehensive by means of income taxes and finally, the use of subsidies and tax exemptions to stimulate industrial development.

Market diversification is one of the keys to success in the new era of world trade. Highly competitive countries have accomplished positive and sustained growth rates by not depending on a single market for their exports and imports. In Mexico, on the contrary, 80% of exports and 45% of imports concentrate in the United States. The South Korean market represents an opportunity for the Mexican economy, as the relationship between the two countries has strengthened in recent decades. This opportunity would promote greater economic growth for both countries if they reached a Free Trade Agreement, as we show in this work. The aim of this research is to assess the complementarity between these countries and estimate their external long-term equilibrium using the Thirlwall trade restriction model. Results confirm the existence of trade complementarity between the two economies and show that these are able to achieve long-term equilibrium in the external sector. Additionally, the Mexican economy would not face balance of payment constraints for growth when trading with South Korea, as it currently does with the United States. [ABSTRACT FROM AUTHOR]