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Maximising Mexico's Gains from Integration in the World Economy

Author

Listed:
  • David Haugh

    (OECD)

  • Roselyne Jamin

    (OECD)

  • Bruno Rocha

Abstract

This paper discusses Mexico’s foreign trade and investment policies and provides specific recommendations to enhance the benefits of a closer integration in the world economy. Over the past two decades, Mexico has made significant progress in reducing barriers to trade and foreign direct investment (FDI), and this has boosted GDP per capita growth. Nevertheless, Mexico needs to make further progress in reforming its trade policy by further reducing MFN tariff barriers and non-tariff barriers so as to promote efficiency in the economy. Barriers to FDI remain high, particularly in some services and infrastructure sectors, such as telecommunications and domestic land transport. Restrictions to foreign ownership should be eased to attract higher inflows and thereby improve productivity. To broaden the benefits from FDI, supplier linkages between FDI investors and other firms in Mexico should be enhanced. Tirer profit au maximum de l'intégration du Mexique dans l'économie mondiale Le présent papier examine les politiques menées par le Mexique dans le domaine des échanges et investissements internationaux, et formule des recommandations spécifiques visant à lui permettre de tirer le meilleur parti possible d’une intégration plus étroite au sein de l’économie mondiale. Au cours des deux dernières décennies, le Mexique a sensiblement progressé dans la réduction des obstacles aux échanges et à l’investissement direct étranger (IDE), ce qui a favorisé l’augmentation du PIB par habitant. Cela étant, des progrès restent à faire sur le plan de la réforme de la politique commerciale, en réduisant encore les obstacles tarifaires et non tarifaires sur une base NPF, de manière à accroître l’efficience de l’économie. Les entraves à l’IDE demeurent nombreuses, notamment dans certains secteurs de services et infrastructures comme les télécommunications et les transports terrestres intérieurs. Il conviendrait d’assouplir les restrictions touchant les intérêts étrangers de manière à attirer davantage d’investissements et à améliorer ainsi la productivité. Pour tirer un plus large profit de l’IDE, il conviendrait de renforcer les liens logistiques entre les investisseurs étrangers et les autres entreprises présentes au Mexique.

Suggested Citation

  • David Haugh & Roselyne Jamin & Bruno Rocha, 2008. "Maximising Mexico's Gains from Integration in the World Economy," OECD Economics Department Working Papers 657, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:657-en
    DOI: 10.1787/230020040844
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    Citations

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    Cited by:

    1. Ibarra, Carlos A., 2011. "Import elasticities and the external constraint in Mexico," Economic Systems, Elsevier, vol. 35(3), pages 363-377, September.
    2. Ibarra, Carlos Alberto, 2011. "Maquila, currency misalignment and export-led growth in Mexico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

    More about this item

    Keywords

    foreign direct investment; investissement direct étranger; Mexico; Mexique; performance commerciale; politique commerciale; trade performance; trade policy;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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