Summary This article finds that shocks to net financial inflows, world oil prices, the US growth rate, and the lagged real exchange rate explain most of the fluctuations in Mexico's annual growth since 1979. The article also estimates how the effects of these external constraints have changed since Mexico's liberalization policies of the late 1980s and the formation of NAFTA in 1994. Estimates of an investment function and other tests show that growth drives investment but not conversely, in the short run. Investment is driven mainly by oil prices and the accelerator effect; foreign direct investment has no significant impact.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 37 (2009) Issue (Month): 7 (July) Pages: 1274-1284 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF