Capital flows and trade in Mexico: A model of institutional dynamics

Abstract

This paper builds a system‐dynamics model of the Mexican economy and tests several propositions regarding policy and income inequality. It concludes, among other things, that one of the most significant developments over the past twenty years has been the declining wage paid to those in the manufacturing export sector. As a consequence, policies aimed at increasing developing states participation in the internationalization of production have been less helpful than supposed.

Citation

Harvey, J.T. (2004), "Capital flows and trade in Mexico: A model of institutional dynamics", International Journal of Development Issues, Vol. 3 No. 1, pp. 1-28. https://doi.org/10.1108/eb045837