1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Maximising Mexico's Gains from Integration in the World Economy

This paper discusses Mexico’s foreign trade and investment policies and provides specific recommendations to enhance the benefits of a closer integration in the world economy. Over the past two decades, Mexico has made significant progress in reducing barriers to trade and foreign direct investment (FDI), and this has boosted GDP per capita growth. Nevertheless, Mexico needs to make further progress in reforming its trade policy by further reducing MFN tariff barriers and non-tariff barriers so as to promote efficiency in the economy. Barriers to FDI remain high, particularly in some services and infrastructure sectors, such as telecommunications and domestic land transport. Restrictions to foreign ownership should be eased to attract higher inflows and thereby improve productivity. To broaden the benefits from FDI, supplier linkages between FDI investors and other firms in Mexico should be enhanced.

English

Keywords: foreign direct investment, Mexico, trade performance, trade policy
JEL: F21: International Economics / International Factor Movements and International Business / International Investment; Long-term Capital Movements; F14: International Economics / Trade / Empirical Studies of Trade
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