The dynamic of manufacturing exports as a constraint to growth in Mexico through the analysis of productivity and FDI, 2005-2018
DOI:
https://doi.org/10.24215/23143738e073Keywords:
manufacturing exports, foreign direct investment, labor productivityAbstract
This research aims to analyze the problem of Mexico’s slow economic growth during the 2005–2018 period, taking the evolution of manufacturing labor productivity and the Foreign Direct Investment (FDI) as determining factors in the dynamics of manufacturing exports, which constitute a source of economic growth for open economies. On the other hand, the validation of this hypothesis is carried out through the Error Correction Vectors (VEC) methodology. The results show that the incidence of FDI is lower than manufacturing labor productivity and that both variables are cointegrated in the long run. Therefore, it is concluded that it is important to consider the design of sectoral policies resulting in improvements in labor productivity, as well as to modify strategies to attract foreign investment in order to stimulate economic growth jointly.
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