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Capital Flows and Trade in Mexico: A Model of Institutional Dynamics


  • John Harvey

    () (Department of Economics, Texas Christian University)


This paper builds a system-dynamics model of the Mexican economy and tests several propositions regarding policy and income inequality. It concludes, among other things, that one of the most significant developments over the past twenty years has been the declining wage paid to those in the manufacturing export sector. As a consequence, policies aimed at increasing developing states participation in the internationalization of production have been less helpful than supposed.

Suggested Citation

  • John Harvey, 2004. "Capital Flows and Trade in Mexico: A Model of Institutional Dynamics," Working Papers 200401, Texas Christian University, Department of Economics.
  • Handle: RePEc:tcu:wpaper:200401

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    File Function: First version, 2004
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    1. repec:mes:jeciss:v:35:y:2001:i:2:p:439-449 is not listed on IDEAS
    2. repec:mes:jeciss:v:22:y:1988:i:3:p:633-665 is not listed on IDEAS
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    More about this item


    Mexico; income inequality; computer simulation;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean


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