Abstract
Mexico's oil windfall was advantageously later and smaller than that of most oil exporters, but it was still absorbed too quickly. Inflation accelerated, the exchange rate appreciated and diversification into competitive non-oil tradeables, like resource-based industry (RBI) was retarded. Too much RBI investment was channelled through state enterprises whose performance deteriorated. It relied heavily on the protected domestic market which fell short of projections. Excess capacity and inadequate revenues then made RBI vulnerable as Mexico rapidly liberalized its economy in the late 1980s.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
