Structural Change, the Real Exchange Rate, and the Balance of Payments in Mexico, 1960-2012
No 2014-01, Working Papers from American University, Department of Economics
This paper estimates a structural model of the balance of payments, with disaggregated exports (manufactured and non-manufactured) and imports (final and intermediate goods), and a reduced form model of the trade balance for the Mexican economy. The analysis identifies several structural breaks, implying a division of the entire sample period into five phases. The results indicate that a tightening of the balance-of-payments constraint may account for the slowdown in Mexico’s growth only during certain subperiods of the post-liberalization era, and that the impact of real exchange rate changes on the trade balance has diminished as a result of the increasing integration of export industries into global supply chains. The results also suggest an important asymmetry, whereby a country can grow below the rate consistent with balance-of-payments equilibrium when other constraints are more binding, but cannot sustain growth above that rate. JEL classification: F43, F14, E12, O24
New Economics Papers: this item is included in nep-int, nep-opm and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://doi.org/10.17606/g79a-dq42 First version, 2014 (application/pdf)
Journal Article: Structural change, the real exchange rate and the balance of payments in Mexico, 1960–2012 (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:amu:wpaper:2014-01
Access Statistics for this paper
More papers in Working Papers from American University, Department of Economics
Bibliographic data for series maintained by Thomas Meal ().