Thirlwall’s Law, Investment, Productive Chains and Domestic Markets
Fuente:
Redalyc
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Artículo científico |
| Sprache: | en |
| Veröffentlicht: |
Instituto Mexicano de Ejecutivos de Finanzas A.C.
2024
|
| Schlagworte: | |
| Online-Zugang: | |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| _version_ | 1876458151057817600 |
|---|---|
| author | Juan Alberto Vázquez Muñoz |
| author_facet | Juan Alberto Vázquez Muñoz |
| contents | Thirlwall’s Law, Investment, Productive Chains and Domestic Markets Juan Alberto Vázquez Muñoz Economía y Finanzas Integration Growth Theory Industrialization Econometric Modeling Developing Countries The aim of this paper is to apply the extended Thirlwall’s Law, which incorporates capital accumulation to explain China’s (1971-2022) and Mexico’s (1961-2022) output growth rates. We use the ARDL cointegration methodology to estimate their import demand functions. We get robust estimations and then calculate their long-run growth rates, which result very close to their actual values. We recommend changing the Mexican industrialization strategy to generate domestic productive chains and domestic industries to substitute import-goods and dynamize the domestic market. One limit of our paper is that we use aggregate variables, but it could be necessary to analyze the effects of exports and capital accumulation in the specific domestic industry subsectors. The originality lies in showing that China’s dynamism during the last decades is more related to its dynamic capital accumulation than to its dynamic growth rate of exports, whereas Mexico’s slow growth rate regime is more related to its low capital accumulation than to its high growth rate of exports. JEL Classification: C5, F15, O1, O14, O19, O40. 2024 artículo científico 1665-5346 https://www.redalyc.org/articulo.oa?id=423780728001 https://www.redalyc.org/journal/4237/423780728001/ https://www.redalyc.org/journal/4237/423780728001/html/ https://www.redalyc.org/journal/4237/423780728001/423780728001.epub https://www.redalyc.org/journal/4237/423780728001/movil 10.21919/remef.v19i3.999 en http://www.redalyc.org/revista.oa?id=4237 Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance application/pdf Instituto Mexicano de Ejecutivos de Finanzas A.C. Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance (México) Num.3 Vol.19 |
| format | Artículo científico |
| id | redalyc_423780728001 |
| institution | Redalyc |
| language | en |
| publishDate | 2024 |
| publisher | Instituto Mexicano de Ejecutivos de Finanzas A.C. |
| spellingShingle | Thirlwall’s Law, Investment, Productive Chains and Domestic Markets Juan Alberto Vázquez Muñoz Economía y Finanzas Integration Growth Theory Industrialization Econometric Modeling Developing Countries Thirlwall’s Law, Investment, Productive Chains and Domestic Markets Juan Alberto Vázquez Muñoz Economía y Finanzas Integration Growth Theory Industrialization Econometric Modeling Developing Countries The aim of this paper is to apply the extended Thirlwall’s Law, which incorporates capital accumulation to explain China’s (1971-2022) and Mexico’s (1961-2022) output growth rates. We use the ARDL cointegration methodology to estimate their import demand functions. We get robust estimations and then calculate their long-run growth rates, which result very close to their actual values. We recommend changing the Mexican industrialization strategy to generate domestic productive chains and domestic industries to substitute import-goods and dynamize the domestic market. One limit of our paper is that we use aggregate variables, but it could be necessary to analyze the effects of exports and capital accumulation in the specific domestic industry subsectors. The originality lies in showing that China’s dynamism during the last decades is more related to its dynamic capital accumulation than to its dynamic growth rate of exports, whereas Mexico’s slow growth rate regime is more related to its low capital accumulation than to its high growth rate of exports. JEL Classification: C5, F15, O1, O14, O19, O40. 2024 artículo científico 1665-5346 https://www.redalyc.org/articulo.oa?id=423780728001 https://www.redalyc.org/journal/4237/423780728001/ https://www.redalyc.org/journal/4237/423780728001/html/ https://www.redalyc.org/journal/4237/423780728001/423780728001.epub https://www.redalyc.org/journal/4237/423780728001/movil 10.21919/remef.v19i3.999 en http://www.redalyc.org/revista.oa?id=4237 Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance application/pdf Instituto Mexicano de Ejecutivos de Finanzas A.C. Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance (México) Num.3 Vol.19 |
| title | Thirlwall’s Law, Investment, Productive Chains and Domestic Markets |
| topic | Economía y Finanzas Integration Growth Theory Industrialization Econometric Modeling Developing Countries |
| url | https://www.redalyc.org/articulo.oa?id=423780728001 https://www.redalyc.org/journal/4237/423780728001/ https://www.redalyc.org/journal/4237/423780728001/html/ https://www.redalyc.org/journal/4237/423780728001/423780728001.epub https://www.redalyc.org/journal/4237/423780728001/movil |