Resources, trade and debt: the case of Mexico

Graciela Chichilnisky, Geoffrey Heal and Darryl McLeod ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper studies a two-region economy , with two sectors and three factors of production : oil, capital and labor . The South exports oil in exchange for industrial goods from the North . There is a net capital inflow to the South . This equals the difference between its export revenues and import costs, and represents the South's indebtedness . This overseas borrowing finances the development of the oil sector : increased borrowing leads to higher oil supplies, to new levels of consumption and a new distribution of income in the South, as well as to new levels of exports from the North . The paper studies the macro impacts of changes in the value of the debt on both the borrowing and the lending regions . The results are illustrated by simulations with data for the U .S .A . and Mexico .

Keywords: Mexico; north-south; trade; debt; debt in developing nations; oil exportation; PEMEX; income distribution (search for similar items in EconPapers)
JEL-codes: F16 Q41 Q43 (search for similar items in EconPapers)
Date: 1983
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in Global Analysis and Projections Division No. 1984-5 (1983): pp. 10-34

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:8074

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