Trade liberalization and foreign direct investment in Mexico: implications for geography

Abstract

This paper analyzes the process of trade liberalization, as well as the dynamics of foreign direct investment in Mexico. This is relevant to evaluate the performance of the Mexican economy since the implementation of the economic reforms of the governments since the eighties. The hypothesis is that nations that have made institutional arrangements to favor international trade schemes, in general terms, have better welfare conditions for their populations. The methodology used is descriptive and the data used come from the following sources: the World Bank and the Commission for Latin America and the Caribbean. Its periodicity is annual. The results show that the process of trade liberalization and foreign direct investment has contributed to the growth of the Mexican economy and its greater insertion in the world economy. It concludes that there is a need to deepen the agenda of international trade gains based on schemes of greater added value for national producers and greater participation of other sectors of society.