Liberalisation, Exports and Growth in Mexico 1978‐94: A structural analysis

Abstract

In this paper, the results of an exports led growth strategy accompanied by a trade liberalisation policy, implemented in Mexico, are analysed for three periods 1978-82, 1983-87 and 1988-94. The input-output analysis is utilised, to determine the effects of manufacturing exports on gross output, to measure the degree of the global integration of the economy and, in particular, to measure the integration of the leading exporting manufacturing industries to domestic industries. The effects of liberalisation on increasing imports and the displacement of domestic production by imports, in manufacturing, are also measured and analysed. The general results of this analysis allowed us to conclude that the positive effect of increasing manufacturing exports on expanding production is limited and offset by the increasing manufacturing imports displacing domestic production. The increasing imports are mainly inputs demanded by growing exports.

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