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International trade and economic growth in Mexico

Author

Listed:
  • Fullerton, Thomas M., Jr.
  • Kababie, Kababie
  • Boehmer, Charles R.

Abstract

This study empirically examines on the role of international trade on economic growth in Mexico. To allow for potentially dynamic, as well as endogenous, patterns often associated with exports, imports, and growth, the analysis relies upon time series approaches involving causality and vector error correction methods. Results indicate that imports play a more critical role than exports do for economic growth in Mexico. As such, the outcomes contribute to the growing body of international evidence regarding import led growth in the global economy.

Suggested Citation

  • Fullerton, Thomas M., Jr. & Kababie, Kababie & Boehmer, Charles R., 2012. "International trade and economic growth in Mexico," MPRA Paper 42991, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42991
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    File URL: https://mpra.ub.uni-muenchen.de/42991/1/MPRA_paper_42991.pdf
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    References listed on IDEAS

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    2. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    3. Shandre Mugan Thangavelu & Gulasekaran Rajaguru, 2004. "Is there an export or import-led productivity growth in rapidly developing Asian countries? a multivariate VAR analysis," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1083-1093.
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    7. Carlos Ibarra, 2010. "Exporting without growing: Investment, real currency appreciation, and export-led growth in Mexico," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(3), pages 439-464.
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    Cited by:

    1. Bakari, Sayef, 2016. "Impact of Exports and Imports on Economic Growth in Canada: Empirical Analysis Based on Causality," MPRA Paper 75910, University Library of Munich, Germany.
    2. Esat Durguti & Emine Gashi & Filloreta Kunoviku-Demiri & Milaim Mehmeti, 2020. "Evaluation of Economic Indicators for Western Balkans Countries: Policy Recommendations for the Financial and Economic Growth," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 36-46, January.

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    More about this item

    Keywords

    International Trade; Growth; Mexico; Dynamic Models;
    All these keywords.

    JEL classification:

    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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