Year: 2010
Type: preprint
Abstract: Following its opening to trade and foreign investment in the mid-1980s, Mexico's economic growth has been modest at best, particularly in comparison with that of China.Comparing these countries and reviewing the literature, we conclude that the relation between openness and growth is not a simple one.Using standard trade theory, we find that Mexico has gained from trade, and by some measures, more so than China.We sketch out a theory in which developing countries can grow faster than the United States by reforming.As a country becomes richer, this sort of catch-up becomes more difficult.Absent continuing reforms, Chinese growth is likely to slow down sharply, perhaps leaving China at a level less than Mexico's real GDP per workingage person.
DOI: 10.21034/sr.453
Authors: Timothy Jerome Kehoe, Kim J. Ruhl
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
Funder: National Science Foundation
OpenAlex ID: W3124611832