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Articles

Vol. 14 No. 51 (2019)

Internacional trade performance and economicgrowth in Mexico

DOI:
https://doi.org/10.29201/4nfzmc75
Published
December 20, 2019

Abstract

Mexico’s international trade with the rest of the world is an important element in the performance of its economy. In the last twenty years there has been an significant opening to the rest of the world. The theory that supports this research is the so-called Thirlwall Act, which states: “The unfavorable trade balance of the current accounts of the balance of payments is a restriction on the growth of the economy”1 The objective of this research proposes the  exposure of a structural problem presented by Mexico’s international trade related to the concentration of exports in the US market, it also includes two major structural deficiencies linked to the evolution of imports and exports, which significantly affect favorable GDP dynamics. Finally, this research demonstrates the validity of referred Law in Mexico’s
foreign trade by using an internal absorption model.

References