Interest Groups and Trade Reform in Mexico

Preprint OPEN
Luis Sanchez-Mier;
(2005)
  • Subject: Trade Reform, Mexico, Coalition Formation, Aspirations, Cooperative Games, Interest Groups
    • jel: jel:O24 | jel:O12 | jel:D72 | jel:C71

Mexico experienced widespread economic reform in the last two decades. From being a protectionist economy with a policy of import substitution, it has turned into an export-oriented open economy. Why was protectionism a stable policy, and how was it overturned by a refo... View more
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    20 references, page 1 of 2

    Source: Base de Datos Pol´ıticos de las Am´ericas, (1999).

    sn 80000 o

    M 60000

    200000 180000 160000 140000 $120000 f

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    iM80000 60000 40000 20000 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Source: INEGI.

    The income statements of the public firms in manufacturing reveal an average net income margin33 of approximately 8%. This estimate is based on the reported net income margins of 33 firms traded in the Mexican stock exchange for the years of 1992-2001.

    INEGI reports value of sales data for the manufacturing sector only from 1987 to 1995. Using this figures and the average net income margin of 8% gives an average of net income to output of 4%. Using output data from INEGI, Figure 3.5 shows the estimated net income of the manufacturing sector in the period 1991-2002. 33The ratio of net income to total sales.

    [3] ---- (1985): “Endogenous vs. Exogenous Coalition Formation,” Economie appliqu´ee, XXXVII, 611-635.

    [4] Flores Quiroga, A.R. (1998): Proteccionismo versus Libre Cambio: La Econom´ıa de la Protecci´on Comercial en M´exico, 1970-1994. Mexico: Fondo de Cultura Econ´omica.

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