Growth and the External Sector: A Structured Problem in the Mexican Economy

Abstract

This paper has the intention to show that the external sector of México is a structural problem that affects the growth of its economy. All the recent crises that have undergone the country have been caused mainly by the weaknesses of this sector. This problem has not comprised of the debate that has settled down about the structural reforms that the country requires. It has motivated the investigation of this process. In order to obtain the proposed objective the statistics available have been used that emitthe Mexican official institutions.
The external sector has had a significant process of opening from the entrance of México in the Free Trade Agreement with North América. In this paper one mainly demonstrates that the measured growth of the economy in terms of the gross domestic product is correlated with the imports, by the lack of internal linking, when not taking place the requirements of the industry. As well, a relation of unfavorable international prices has been pronounced that together with the balance of payment by interests of external debt and the repatriation of the utilities to the rest of the world by the foreign companies, it has had as consequence in a systematic current account balance of payments. All it jointly with the lost one of competitiveness in the international markets has caused an important part of the insufficient growth of the economy.