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 -bi-directional Granger causality- between exports, imports and FDI.
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Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number
0404.
Length: Date of creation: Apr 2004 Date of revision: Handle: RePEc:ukc:ukcedp:0404
Contact details of provider: Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP Phone: +44 (0)1227 764000 Fax: +44 (0)1227 827850 Web page: http://www.ukc.ac.uk/economics/
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Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business O1 - Economic Development, Technological Change, and Growth - - Economic Development
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