Some Economic Effects of Closing the Economy

Gerardo Esquivel and Graciela Márquez

in The Decline of Latin American Economies

Published by University of Chicago Press

Published in print August 2007 | ISBN: 9780226185002
Published online February 2013 | e-ISBN: 9780226185033 | DOI:
Some Economic Effects of Closing the Economy

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This chapter focuses on an economy that was recently opened and which has been the subject of many of the empirical studies: Mexico's. Mexico substantially reduced its tariff and non-tariff barriers, starting in the mid-1980s, and later on, in the early 1990s, joined the North American Free Trade Agreement, effectively developing a very open economy. However, despite the fact that the Mexican economy was relatively closed in the early 1980s, it is not quite clear how long that had been the case. The chapter argues that, even though Mexican industry has been protected for a long period, which in some cases goes back to the late nineteenth century, the structure of protection that existed in the Mexican economy in the second half of the twentieth century came from an important modification to its commercial policy which took place around 1947.

Keywords: Mexico; tariff; Free Trade Agreement; Mexican economy; commercial policy; non-tariff barriers; open economy

Chapter.  10666 words.  Illustrated.

Subjects: International Economics

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