Mexico: Industrialization and Trade Policies since 1940

Free Trade Areas , Policy Independence , and Industrialization Targets ∗

We investigate a mechanism whereby a group of nations forming a free trade area simultaneously can efficiently satisfy industrialization targets. The mechanism does not rely on cross-country transfers, and it is efficient for each member country individually even if other members of the free trade area do not implement the efficient policy. It allows each member country to gain from participati...

International Trade and Industrialization with Negative Population Growth

This paper builds a small-open-economy, non-scale-growth model with negative population growth and investigates the relationship between trade patterns and per capita consumption growth. Under free trade, if the population growth rate is negative and its absolute value is small, the home country becomes an agricultural country. Then, the long-run growth rate of per capita consumption is positiv...

Technology Adoption and Trade Policies

We examine in a dyanmic model how a firm determines the optimal level of innovation, and how a firm chooses between innovation and imitation. This paper considers a local firm, which is competing with a foreign, more productive, firm in terms of quantity, and at the same time, the local firm is able to spend the optimal amount of resources on innovation, with the purpose of closing the technolo...

Purchasing power parity in Mexico since 1933

A new approach to cointegration developed by Enders et al. (Cointegration tests using instrumental variables with an example of the U.K. demand for money. Unpublished working paper. http://wenders.people.ua.edu/time-seriesmethods.html, 2008) is applied to long-span, high-frequency data to test for purchasing power parity in the Mexico–US real exchange rate. Overall the empirical results suggest...

A Century of Chinese State Policies toward Industrialization