IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Pedal to the Metal: Structural Reforms to Boost Long-Term Growth in Mexico and Spur Recovery from the Crisis

  • David Haugh


  • Agustin Redonda

While Mexico’s growth performance has gradually improved over the past decades, its convergence toward OECD countries has been less rapid than in several other emerging markets. The recent significant reductions in import tariffs should help the economy take fuller advantage of trade and investment integration, which could be a relative strength for Mexico given its geographic location. Reforms introduced in the past two years, including those to promote competition and transparency in the financial sector and, to a lesser extent in telecommunications, will also stimulate the dynamism of the economy. Despite this progress, further reforms are needed to boost overall and within-sector productivity. Relative weaknesses in education, infrastructure, financial development, the rule of law, as well as a lack of competition come out in various studies as explaining why Mexico has not grown as fast as other countries. Focusing attention now on reforms in areas with rapid pay-offs such as improving competitiveness and infrastructure could yield double benefits in supporting the recovery from the current recession and longer-term growth. This can be achieved by increasing competition, especially in network industries, liberalizing further the foreign investment and trade regimes, and improving education coverage and trade-related infrastructure. Pied au plancher : Des réformes structurelles pour dynamiser la croissance à long terme au Mexique et accélérer la sortie de crise Ces dernières décennies, le Mexique a progressivement amélioré ses performances en matière de croissance, mais sa convergence vers les pays de l’OCDE a été beaucoup moins rapide que celle de plusieurs autres marchés émergents. Les récentes réductions substantielles des droits à l’importation devraient aider l’économie à profiter plus pleinement de l’intégration des échanges et des investissements, ce qui pourrait constituer un atout relatif pour le Mexique compte tenu de sa situation géographique. Les réformes lancées ces deux dernières années, notamment celles qui visent à promouvoir la concurrence et la transparence dans le secteur financier et, à un degré moindre, dans les télécommunications, stimuleront également le dynamisme de l’économie. En dépit de ces progrès, de nouvelles réformes s’imposent pour favoriser la productivité globale et sectorielle. Selon diverses études, si la croissance du Mexique n’a pas été aussi rapide que celle des autres pays, cela tient aux faiblesses relatives concernant l’éducation, le développement du secteur financier et l’État de droit, à quoi s’ajoute le manque de concurrence. Concentrer maintenant l’attention sur des réformes rapidement rentables – en améliorant, par exemple, la compétitivité et les infrastructures – pourrait générer un double effet positif : soutenir la reprise pour sortir de la récession actuelle et créer de la croissance à long terme. On peut y parvenir en développant la concurrence, notamment dans les industries de réseau, en libéralisant davantage le régime des investissements étrangers et des échanges commerciaux, et en améliorant la couverture de l’enseignement et les infrastructures liées au commerce.

If you experience problems downloading a file, check if you have the proper application to view it first. 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.

File URL:
Download Restriction: no

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 733.

in new window

Date of creation: 03 Nov 2009
Date of revision:
Handle: RePEc:oec:ecoaaa:733-en
Contact details of provider: Postal:
2 rue Andre Pascal, 75775 Paris Cedex 16

Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:733-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.