Private investment in Mexico : an empirical analysis

Abstract

In 1985, Mexico shifted to a growth strategy based on private investment and exports rather than on import substitution and public sector investment. The policy implications of this study, are that to increase investment, Mexico should follow policies aimed at reducing investment adjustment costs and increasing factor mobility and credibility in the program of structural reforms, rather than at subsidizing investment.Economic Stabilization,International Terrorism&Counterterrorism,Economic Theory&Research,Environmental Economics&Policies,Macroeconomic Management