Spaghetti Regionalism or Strategic Foreign Trade: Some Evidence for Mexico

After signing ten free trade agreements between 1993 and 2001, Mexico as a world leader in foreign trade policy continues to negotiate with countries such as Japan, Panama, Uruguay or Argentina. Criticism of multiple regional trade agreements (RTAs) arises from a consistency test, but also from the ability of a country to administer them. Mexico's multiple agreements have generally used the principle of NAFTA consistency, after the acceptance that NAFTA became a broader and deeper accord than results of the Uruguay multilateral achievements. An analysis of multiple RTAs is presented, including a game model of equilibrium, along with a political economy approach of why Mexico seeks multiple RTAs as its foreign trade policy.

Economic and Regulatory Challenges and Opportunities for US-Mexico Electricity Trade and Cooperation, PRP 174

Public Affair

Oil risk contracts, business conduct and performance patterns: Data panel analysis [Contratos de riesgo de petróleo, patrones de conducta y desempeño de empresas: Análisis de panel de datos]

Using data from financial and economic performance of International Oil Companies (IOCs) in the exploration-extraction (E&E) business, along with institutional and market orientation of governments and National Oil Companies (NOCs) that receive project offers, the international E&E market is analyzed in both institutional development and behavioral patterns of type of E&E contract following an agency theory approach. Additionally, given Mexico's recent energy reform being launched between 2015 and next 2019, the various types of E&E contracts are analyzed, comparing license contracts with production sharing and risk service ones. Next, using panel data methods an analysis of 17 enterprises between 2005 and 2015 is presented, where so-called global IOCs show higher returns and commitment than specialized ones, demonstrated by their net income and return on equity, or ROE. © 2017 Universidad Nacional Autónoma de México, Facultad de Contaduría y Administració

A Crowdfunding Agency Model for Renewables in an Emerging Economy

Mobilizing finance for investment in renewable energy is a challenge for climate change mitigation via fostering the layout of new projects. The challenge becomes critical in emerging or developing economies, mainly because the architecture of financial intermediaries as well as their instruments are shallow and insufficiently developed. The present investigation reviews alternative vehicles of finance applied specifically to renewable energies, that are intermittent, so-called non-dispatchable, and innovation- plus capital-intensive, as compared to conventional sources. The high degree of investment irreversibility and with relatively high uncertainty in the regulatory and wholesale market, calls to carefully design origins of finance at the government, private, and mixed levels. An agency-based theoretical framework is proposed within our ongoing research effort that includes green banks, state banks, bonds, and mainly, crowdfunding, that could be applied to Mexico