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Institutions and Development in Mexico. Are Formal Economic Reforms Enough?

Economic Analysis Review

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Title Institutions and Development in Mexico. Are Formal Economic Reforms Enough?
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Creator Palma-Rangel, Manuel
 
Description This paper examines whether the current political arrangements framing the Mexican politics help in consolidating and advancing those economic reforms that have been implemented in Mexico since the 1982 severe economic crises. I will argue that these arrangements create impediments to the co-ordination required to sustain and advance those policy changes that are needed under the new economic model. Formal and informal institutional environments that do not provide for the adequate enforcement of political exchanges also generate high transaction costs. Politicians will have to design complex mechanisms to protect their rent allocation. Many political transactions will not be implemented, and those that may be so will tend to generate relatively inefficient public policies. The capability of the political system to enforce the new economic rules as well as property and other legal rights is also weak. As these factors play a key role for the allocative efficiency of markets and, consequently, for growth and development, the paper concludes that formal macroeconomic and structural reforms in economic sectors may not be enough.
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Publisher Universidad Alberto Hurtado - Facultad de Economía y Negocios
 
Contributor —
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Date 2010-03-02
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://www.rae-ear.org/index.php/rae/article/view/63
 
Source Revista de Análisis Económico - Economic Analysis Review; Vol 21, No 2 (2006); 83-103
Revista de Análisis Económico – Economic Analysis Review; Vol 21, No 2 (2006); 83-103
0718-8870
0716-5927
 
Language eng
 
Relation http://www.rae-ear.org/index.php/rae/article/view/63/121