Foreign Direct Investment, Exports and Imports in Mexico

Penélope Pacheco‐López
Authors registered in the RePEc Author Service: Penélope Pacheco-López ()

The World Economy, 2005, vol. 28, issue 8, 1157-1172

Abstract: 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 – bidirectional Granger causality – between exports, imports and FDI.

Date: 2005
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