Foreign Direct Investment, Exports and Imports in Mexico

Penélope Pacheco-López ()

Studies in Economics from School of Economics, University of Kent

Abstract: This paper analyses the liberalisation of foreign direct investment (FDI) in Mexico since the late-1980s, and its relationships with exports and imports. Such a process has eased the access of multinational corporations (MNCs) to the country, which has promoted exports. However, it has also resulted in a higher import content and the displacement of local firms, which has limited Mexico's economic development through the balance of payments constraint. The analysis is supported by the existence of linkages -bi-directional Granger causality- between exports, imports and FDI.

Keywords: Foreign Direct Investment-Liberalisation; Imports; Exports; NAFTA; Mexico (search for similar items in EconPapers)
JEL-codes: F14 F21 F23 O1 (search for similar items in EconPapers)
Date: 2004-04
New Economics Papers: this item is included in nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Journal Article: Foreign Direct Investment, Exports and Imports in Mexico (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ukc:ukcedp:0404

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