Resources, trade and debt: the case of Mexico
AbstractThe paper studies a two-region economy , with two sectors and three factors of production : oil, capital and labor . The South exports oil in exchange for industrial goods from the North . There is a net capital inflow to the South . This equals the difference between its export revenues and import costs, and represents the South's indebtedness . This overseas borrowing finances the development of the oil sector : increased borrowing leads to higher oil supplies, to new levels of consumption and a new distribution of income in the South, as well as to new levels of exports from the North . The paper studies the macro impacts of changes in the value of the debt on both the borrowing and the lending regions . The results are illustrated by simulations with data for the U .S .A . and Mexico .
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8074.
Date of creation: 1983
Date of revision:
Mexico; north-south; trade; debt; debt in developing nations; oil exportation; PEMEX; income distribution;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
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- Chichilnisky, Graciela, 1990. "Global models and North-South relations," MPRA Paper 8126, University Library of Munich, Germany.
- Chichilnisky, Graciela, 1990. "Large and small models: their suitability for North-South issues," MPRA Paper 8354, University Library of Munich, Germany.
- Chichilnisky, Graciela, 1985. "International trade in resources: a general equilibrium analysis," MPRA Paper 8356, University Library of Munich, Germany.
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