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Endogenous growth in México: The role of US economic activity and balance of payments transfers
EconoQuantum
View Archive Info| Field | Value | |
| Title |
Endogenous growth in México: The role of US economic activity and balance of payments transfers
Endogenous growth in México: The role of US economic activity and balance of payments transfers |
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| Creator |
Rodríguez Arana, Alejandro
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| Subject |
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Growth; remittances; savings O41, O47, O57 — Growth, remittances, savings. O41, O47, O57 |
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| Description |
This paper calibrates an AK model of growth for México. Investment financing is modeled considering the domestic savings ratio as well as net factorial income and capital inflows of the balance of payments. According to this model, actual parameters determining growth in México are compatible with a long run rate of growth of about 3.6%. Under these circumstances, the ratio of the Mexican GDP to US GDP grows in time. Sustained growth depends heavily upon balance of payments transfers, which nowadays are conformed mainly by family remittances and the US economic growth, variables that nobody in México can control. This fact implies that the domestic savings rate is very low. The paper concludes that to assure a positive growth that improves standards of living and the relative size of México with respect to the US, policies to increase the domestic savings rate and productivity are necessary.
This paper calibrates an AK model of growth for México. Investment financing is modeled considering the domestic savings ratio as well as net factorial income and capital inflows of the balance of payments. According to this model, actual parameters determining growth in México are compatible with a long run rate of growth of about 3.6%. Under these circumstances, the ratio of the Mexican GDP to US GDP grows in time. Sustained growth depends heavily upon balance of payments transfers, which nowadays are conformed mainly by family remittances and the US economic growth, variables that nobody in México can control. This fact implies that the domestic savings rate is very low. The paper concludes that to assure a positive growth that improves standards of living and the relative size of México with respect to the US, policies to increase the domestic savings rate and productivity are necessary. |
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| Publisher |
Universidad de Guadalajara
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| Contributor |
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| Date |
2015-07-13
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — — |
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| Format |
application/pdf
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| Identifier |
http://www.revistascientificas.udg.mx/index.php/EQ/article/view/2590
10.18381/eq.v3i2.2590 |
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| Source |
EconoQuantum; Vol. 3 Núm. 2 Primer Semestre 2007 First Semester; 7-32
2007-9869 1870-6622 |
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| Language |
spa
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| Relation |
http://www.revistascientificas.udg.mx/index.php/EQ/article/view/2590/2359
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| Rights |
Copyright (c) 2015 EconoQuantum
http://creativecommons.org/licenses/by-nc-nd/4.0 |
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