Economic prospects and policies in Mexico |
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Affiliation: | 1. Ecosystems and Environment Research Programme, Faculty of Biological and Environmental Sciences, University of Helsinki, P.O. Box 65 (Viikinkaari 1), FI-00014 Helsinki, Finland;2. Chair of Hydrobiology and Fishery, Estonian University of Life Sciences, Kreutzwaldi 5, 51006 Tartu, Estonia;3. Freshwater Research, 3421 Hwy 117, Baysville, Ontario P0B 1A0, Canada;4. University of Tartu, Faculty of Science and Technology, Estonia;1. State Key Laboratory of Petroleum Resources and Prospecting, China University of Petroleum (Beijing), Beijing 102249, China;2. College of Geosciences, China University of Petroleum (Beijing), Beijing 102249, China;1. Department of Chemical and Biomolecular Engineering, University of California, Berkeley, CA 94720, USA;2. Materials Sciences Division, Lawrence Berkeley National Laboratory, Berkeley, CA 94720, USA;3. Joint Center for Energy Storage Research (JCESR), Lawrence Berkeley National Laboratory, Berkeley, CA 94720, USA |
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Abstract: | This paper focuses on Mexico's possibilities in the world economy, especially in North America. Any successful policy must reorient Mexico's development away from oil and import substitution and toward exports. Proposed reforms would involve (1) devaluing the exchange rate and unifying the official and free-market exchange rates; (2) liberalizing imports by abolishing import restrictions, eliminating official import reference prices, and reducing those tariffs exceeding 40 percent; (3) reducing the existing bias against exports of the incentive system; and (4) limiting the public sector's influence in the economy by reducing the public sector deficit, liberalizing the financial sector, and denationalizing public firms outside basic industries. |
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