Does The Impact of Trade Liberalisation on Exports, Imports, the Balance of Payments and Growth: the Case of Mexico

Penélope Pacheco-López ()

Studies in Economics from School of Economics, University of Kent

Abstract: The aim of this paper is to disentangle the effects of trade liberalisation during the mid-1980s from the liberalisation involved in the North American Free Trade Agreement (NAFTA) on exports, imports and the balance of payments in Mexico. The main empirical results suggest that the trade reforms during the mid01980s had a significant impact on trade, exports and imports; however, the effects of NAFTA are negligible. Since the mid-1980s, the propensity to import has exceeded the propensity to export and this has worsened the growth rate consistent with balanced trade, and this is a major explanation of the slowdown of Mexico's growth in recent years. NAFTA has not delivered the improved growth performance that was promised by Mexico's political leaders at the time.

Keywords: Trade liberalisation; NAFTA; Exports; Imports; Balance of Payments; Mexico (search for similar items in EconPapers)
JEL-codes: C22 F13 F32 F43 (search for similar items in EconPapers)
Date: 2004-01
New Economics Papers: this item is included in nep-his
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Citations: View citations in EconPapers (6)

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