EFFECT OF EXCHANGE APPRECIATION IN MEXICAN DEINDUSTRIALISATION, EFECTO DE LA APRECIACIÓN CAMBIARIA EN LA DESINDUSTRIALIZACIÓN MEXICANA

Carlos Alberto Flores Sánchez, Martha Ofelia Lobo Rodríguez and Jorge Quiroz Félix

Revista Internacional Administracion & Finanzas, 2016, vol. 9, issue 4, 13-22

Abstract: It is common to find in the literature, that industrial activity is one of the main drivers of the economy. This economic activity explains growth in developed countries. However, developing countries show an early deindustrialization, term introduced by Pierre Salama. This term explains why many developing countries are omitted from the transition to a developed economy. This early deindustrialization indicates a change in development. Instead of going through an industrial period, the country tilts to service activities. The environment characterized by decreased participation in employment and production manufacturing, results in a shift of manufacturing workers to the service sector. Hence, the importance of identifying the impact of the real exchange rate (TCR) on the behavior of the Mexican manufacturing industry. This document shows an inverse relationship between TCR with the occupied population (POMN) and manufacturing production PIBMN. This finding gives guidelines to determine the impact of real exchange rates in Mexican deindustrialization process.

Keywords: Deindustrialization; Real Exchange Rate and Manufacturing Industry (search for similar items in EconPapers)
JEL-codes: C22 E20 L60 (search for similar items in EconPapers)
Date: 2016
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