Mexico Beyond NAFTA

by Puchet Anyul; Martin

• ISBN13: 9780415243865
• ISBN10: 0415243866
• Edition: 1st
• Format: Hardcover
• Copyright: 2001-06-29
• Publisher: Routledge

Summary

In this book, chapters by leading Mexican economists are matched with reactions from European colleagues. They offer a novel viewpoint on the critical assessment of the North American Free Trade Area (NAFTA) process, and its implications for the economies of the two continents.

Table of Contents

List of tables	xi
List of figures	xiv
Acknowledgments	xv
Preface	xvi
Notes on contributors	xxiii
PART I Paths to convergence and monetary union(s)	1	(50)
Currency boards and monetary unions: The road ahead or a cul de sac for Mexico's exchange rate policy?	3	(18)
David Ibarra
Juan Carlos Moreno-Brid
Advantages and limitations of currency boards: an overview	4	(7)
A monetary union: a necessary step for Mexico's sub-regional integration?	11	(3)
Final considerations	14	(7)
Is a convergence path of monetary policies possible under the North American Free Trade Agreement?	21	(30)
Luis Miguel Galindo
Horacio Catalan
Theoretical framework	22	(3)
The P* model	25	(1)
Empirical evidence	26	(4)
The estimated P* model	30	(5)
Conclusions and economic policy issues	35	(16)
Comments	46	(5)
Francesco Farina
PART II Mexico's foreign sector, the exchange rate, trade and productive structures	51	(70)
The external relationship of the Mexican economy with the United States, and its implications beyond trade	53	(25)
Maria Elena Cardero
A new export-import model	53	(13)
The transborder integrated labor market	66	(6)
Conclusions	72	(6)
Exchange rate and competitiveness	78	(24)
Pablo Ruiz-Napoles
Theoretical approaches to the exchange rate determinants	78	(2)
Relative unit labor costs and real exchange rate	80	(9)
ULC, wages and productivity	89	(1)
Conclusions	90	(12)
Vertical integration and comparative advantages	102	(19)
Fidel Aroche Reyes
Methodology	103	(3)
Some tests on vertical integration and revealed comparative advantage	106	(6)
Summary and conclusions	112	(9)
Comments	115	(6)
Bodo Hilgers
Jurgen Meckl
PART III Sectorial performance in manufacturing, industrial organization and the innovation system during the trade liberalization process	121	(76)
Integration and polarization: Mexico's economy since 1988	123	(24)
Enrique Dussel Peters
Neoliberalism, export-oriented industrialization and liberalization strategy	123	(5)
The impact of liberalization strategy	128	(13)
Conclusions	141	(6)
Liberalization policies and Mexico's competitiveness: Are technological capabilities upgraded or downgraded?	147	(27)
Mario Cimoli
Import substitution period	148	(2)
The transition period	150	(1)
The Exchange Rate Based Stabilization and the new incentive framework	151	(2)
The Mexican industrial performance and the corresponding analysis	153	(4)
The globalization of Mexican industry: towards a modernized assembly plant	157	(3)
Learning capabilities within firms and sectoral specificities	160	(8)
Conclusions	168	(6)
Trade integration and sectorial productivity	174	(23)
Flor Brown
Lilia Dominguez
The new Mexican industrial model	175	(2)
Manufacturing productivity 1984-94	177	(3)
Determinants of productivity	180	(6)
Conclusions	186	(11)
Comments: International openness, dualism and growth	190	(7)
Jean-Luc Gaffard
Michel Quere
PART IV Regional divergence and structural policies	197	(90)
Structural divergence and the dynamics of dualism: Lessons from Mexico before and after NAFTA	199	(44)
Martin Puchet Anyul
Lionello F. Punzo
Some of the old, new and newer perspectives on integration	201	(3)
Before or after NAFTA?	204	(2)
Structural change from the growth perspective	206	(4)
Structural change through a growth cycle approach	210	(3)
Structural dynamics in the long and the medium run	213	(3)
Dualism and growth traps	216	(17)
Economic policies for?	233	(10)
Regional policies in the North American and European integration agreements	243	(19)
Sarah Martinez Pellegrini
The two treaties and their objectives	243	(3)
The institutional framework developed by the agreements	246	(1)
Policies involved in the agreements	247	(2)
Regional policies	249	(7)
Institutional change	256	(2)
Final remarks	258	(4)
The fiscal federal system in Mexico: Fiscal insurance with moral hazard	262	(25)
Jaime Sempere
Horacio Sobarzo
Determinants of moral hazard in the federal system	262	(2)
Mexican fiscal federalism	264	(2)
The institutional context	266	(4)
Redistribution	270	(7)
An example of moral hazard: the ballout of the states	277	(1)
Some proposals to reduce moral hazard	278	(9)
Comments	281	(6)
Oliver Fabel
Bodo Hilgers
Index	287