Modern trade theory suggests that protectionist policies hinder exports by altering domestic prices and production incentives. This paper examines the effect of import tariffs on Mexican non-oil exports through a comprehensive analysis of the Mexican trade sector, including a breakdown of the most important free trade agreements for the Mexican economy, information on Mexican resource mobility and factor endowment, and analysis on Mexico’s tariff structure. The paper finds that import tariffs on both intermediate and final goods have a direct and significant effect on exports, alluding to the existence of an anti-export bias, and argues that free trade is the most effective way to promote exports and allow for domestic price readjustment.
| Identifer | oai:union.ndltd.org:CLAREMONT/oai:scholarship.claremont.edu:cmc_theses-1930 |
| Date | 01 January 2014 |
| Creators | Serra, Daniel J |
| Publisher | Scholarship @ Claremont |
| Source Sets | Claremont Colleges |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | CMC Senior Theses |
| Rights | © 2014 Daniel J. Serra |
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