Economic growth and opening in Mexico

Abstract

THIS WORK ANALYZES THE RESULTS OF THE EXPORT-BASED STRATEGY FOLLOWED IN MEXICO FROM 1983 TO 1994. AN INPUT-OUTPUT ANALYSIS WAS USED TO DETERMINE THE EFFECTS THE EXPORTATION OF MANUFACTURED GOODS HAS ON GROSS PRODUCTION AND TO MEASURE THE ECONOMY´S DEGREE OF GLOBAL INTEGRATION, PARTICULARLY THE INTEGRATION TO THE DOMESTIC PRODUCTIVE BRANCHES OF THE IMPORTANT ECONOMIC BRANCHES EXPORTING MANUFACTURED GOODS. IT ALSO MEASURES AND ANALYSES THE EFFECTS LIBERALIZATION HAS OVER IMPORT INCREASE AND HOW IMPORTS DISPLACE DOMESTIC PRODUCTION. THE RESULTS OF THIS ANALYXIS ALLOWS US TO CONCLUDE THAT AN INCREASE IN EXPORTS HAS A LIMITED POSITIVE EFFECT ON PRODUCT EXPANSION AND IS CONUNTERACTED BY INCREASED IMPORTS OF MANUFACTURED GOODS THAT DISPLACE DOMESTIC PRODUCTION.