Exports, growth, and employment in Mexico, 1978-2000

Abstract

In this paper, the results of an export-led growth strategy accompanied by a trade liberalization policy implemented in Mexico are analyzed for various periods between 1978 and 2000. The input-output analysis is used to determine the effects of growing exports on gross output and on the level of employment. The results of this analysis allowed us to conclude that the positive effect of increasing manufacturing exports on production is limited and offset by manufacturing imports, thus displacing domestic production. The positive effect of exports on direct and indirect employment is not as important as that of domestic production. However, these positive effects of exports are accentuated by the North American Free Trade Agreement.

Keywords:

• employment
• exports
• growth
• input–output
• liberalization