Have liberalisation and NAFTA had a positive impact on Mexico´s output growth?

Belem I. Vasquez Galan and Olajide Oladipo
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Belem I. Vasquez Galan: El Colegio de la Frontera Norte, http://www.colef.mx/Investigacion/InvestigadoresTemas.asp?CualCodigoProyecto=9&VerTodos=0&VerTTema=1&TipoTema=1&CualRegistro=69

Journal of Applied Economics, 2009, vol. 12, 159-180

Abstract: This paper analyses the role of real exports, and foreign direct investment in explaining real growth in an era of economic liberalisation. The econometric approach is based on time series analysis using VARs, Granger causality, impulse response functions and variance decomposition. The empirical results reveal that exports Granger cause output growth in Mexico, which is a possible confirmation of the Export-led growth paradigm. However, no effect from FDI on GDP is found. The inclusion of NAFTAs potential impact confirms the positive effect of exports and reveals that GDP and exports Granger cause FDI. The evidence suggests that export promotion and liberalisation in Mexico had the potential to attract greater flows of foreign capital and induce economic growth.

Keywords: foreign direct investment; exports; output; NAFTA; Mexico (search for similar items in EconPapers)
JEL-codes: C32 F13 F21 O1 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:cem:jaecon:v:12:y:2009:n:1:p:159-180

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