Using a post-Keynesian approach, the paper analyzes the economic growth in the Mexican economy during the period 1929-2003. Our first model emphasizes the role of the ratio of exports/imports income elasticities and the performance of the rest of the world economy, and the second one the relevance of price elasticities, terms of trade, and capital flows. The paper focuses on econometric estimates of involved parameters. During the analyzed period, and selected subperiods, actual growth rates were repeatedly lower than those consistent with a balanced current account. Furthermore, the Mexican economy validates the Marshall-Lerner condition. Finally, starting in 1996 we found a reduced, but positive, impact of capital inflows on the Mexican economy
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Paper provided by Tecnológico de Monterrey, Campus Ciudad de México in its series EGAP Working Papers with number
2004-06.