Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/68087 
Year of Publication: 
2004
Series/Report no.: 
Department of Economics Discussion Paper No. 04,04
Publisher: 
University of Kent, Department of Economics, Canterbury
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.
Subjects: 
Foreign Direct Investment-Liberalisation
Imports
Exports
NAFTA
Mexico
JEL: 
F14
F21
F23
O1
Document Type: 
Working Paper

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