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
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.