 Export-led Growth: A Case Study of MexicoKimberly Waithe, Troy Lorde and Brian Francis MPRA Paper from University Library of Munich, Germany Abstract: Against the backdrop of export-oriented policy reforms to Mexico’s trade regime in the mid 1980s, the present study undertakes a case study of economic growth in Mexico. Using an export-augmented neoclassical production function, the validity of the Export-led Growth Hypothesis for Mexico is also tested over the period 1960-2003. Evidence offers support for the Hypothesis in the short run; however, contrary to the Hypothesis, long-run results suggest an inverse relationship between exports and GDP. A likely explanation is the high import content and diminishing local content of exports, and weak linkages with domestic suppliers, thus reducing possible spillover or multiplier benefits. If Mexico is to succeed in its quest to achieve high and steady economic growth, current incentive schemes that allow tax-free entry of imported inputs and raw materials for export purposes must be reconsidered. Finally, policies that promote technological innovation in manufacturing and linkages with local suppliers are imperative. Keywords: import substitution; export-orientation; trade reform; export-led growth hypothesis (search for similar items in EconPapers) Published in International Journal of Business, Humanities and Technology 1.1(2011): pp. 33-44 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:95557 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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