What is Wrong with Economic Liberalization? The Mexican Case

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Main Author: Elena Cardero
Format: Artículo científico
Language:en
Published: Universidad Nacional Autónoma de México 2006
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author Elena Cardero
author_facet Elena Cardero
contents What is Wrong with Economic Liberalization? The Mexican Case Elena Cardero Guadalupe Mántey Miguel Ángel Mendoza Economía y Finanzas The authors argue that as a result of their technological dependence on developed countries, semi-industrialized economies cannot share in the benefits of international trade. They contend that the free competition assumption on which the conventional international trade theory rests does not hold in reality, and that the new international division of labor is responsible for slowing down income growth and increasing poverty in many developing countries. On the basis of structuralist theory of development, the paper asserts that exchange rate depreciation in an open developing economy like Mexico cannot be relied upon to improve the trade balance. In fact, these countries are often forced to rely on overvaluing the national currency and depressing real wage rates to keep inflation in check, which in turn cause growth rates to fall and poverty to increase –as have been observed in Mexico since the early 1980´s–. The authors present two models of wage rate determination in Mexican manufacturing industry that support their hypotheses, and propose policy measures to achieve balanced growth with a more equitable income distribution 2006 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60125701 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.257 Vol.LXV
format Artículo científico
id redalyc_60125701
institution Redalyc
language en
publishDate 2006
publisher Universidad Nacional Autónoma de México
spellingShingle What is Wrong with Economic Liberalization? The Mexican Case
Elena Cardero
Economía y Finanzas
What is Wrong with Economic Liberalization? The Mexican Case Elena Cardero Guadalupe Mántey Miguel Ángel Mendoza Economía y Finanzas The authors argue that as a result of their technological dependence on developed countries, semi-industrialized economies cannot share in the benefits of international trade. They contend that the free competition assumption on which the conventional international trade theory rests does not hold in reality, and that the new international division of labor is responsible for slowing down income growth and increasing poverty in many developing countries. On the basis of structuralist theory of development, the paper asserts that exchange rate depreciation in an open developing economy like Mexico cannot be relied upon to improve the trade balance. In fact, these countries are often forced to rely on overvaluing the national currency and depressing real wage rates to keep inflation in check, which in turn cause growth rates to fall and poverty to increase –as have been observed in Mexico since the early 1980´s–. The authors present two models of wage rate determination in Mexican manufacturing industry that support their hypotheses, and propose policy measures to achieve balanced growth with a more equitable income distribution 2006 artículo científico 0185-1667 https://www.redalyc.org/articulo.oa?id=60125701 en http://www.redalyc.org/revista.oa?id=601 Investigación Económica application/pdf Universidad Nacional Autónoma de México Investigación Económica (México) Num.257 Vol.LXV
title What is Wrong with Economic Liberalization? The Mexican Case
topic Economía y Finanzas
url https://www.redalyc.org/articulo.oa?id=60125701