Economic structure of mexcio

Mexico is a federal presidential representative democratic republic country, and it is it is the second-largest economy in Latin America. Mexico became independent on 1810, The official language in Mexico is Spanish. Mexico join in of North American Free Trae Area in 1994, January 1. By joining the NAFTA helps Mexica economy drastic changes: the population growth; attract foreign investment; more opportunity to obtain employment; attracting advanced technology and new management from foreign country. This help to stimulate Mexico economy and held Mexico from the economy crisis from 1995.

 This trade agreement helps Mexico go through the economic crisis in 1995. Mexico is the 13^th largest export economy in the world. The majority export for Mexico are cars, vehicle parts, delivery trucks. The majority of exporting country is United States, China, Germany, Japan. Mexico only import goods, and mostly import from united states, China, Germany, Japan and South Korea.

Econ 390 Final paper

-(15-20)4000 

-DOUBLE SPACE

-Your report must be about 15-20 pages in length, including references but ex- cluding tables, figures, and title page.

-A title page, with your name (family name, given name, and preferred name if different from given name), your student ID, and your full Country name, is required.

-You must use 11 or 12 point font, double-spaced text with 1 inch margins

1. Introduction (CIA Mexico Factbook)

Mexico 

-Spanish for most official purposes

-major in oil export

-seond-largest economy in latin america

-social-economic gap remains wide

– Rural areas are often neglected and huge shanty towns ring the cities.

-recent year more Mexicans immigrants returned to mexico

-independent on 1810

federal presidential representative democratic republic

– 13th largest export economy

-major export(Car, vehicle parts, delivery trucks, computer, telephone,etc.)

-major import(Vehicle Parts , Refined Petroleum ), Integrated Circuits ($13.7B), Unspecified ($12.5B) and Computers ($10.7B).)

-major export country: United States ($302B), Canada ($10.4B), China ($5.41B), Germany ($3.95B) and Japan ($3.77B).

-major import country: the United States ($229B), China ($32.4B), Germany ($12.5B), Japan ($10.7B) and South Korea ($9.7B).

– History of this country (independent time,

-economy: population (ethnicity, demographic), GDP per capita(ranking),

-Politics: major political party(CIA) Prime minster, parliament

-Geographic: Land-locked, coastline length,  agraians land

–

Mexico is one of members of North American Free Trae Area (NAFTA)

-happened in 1994, Jan 1.

-net benefit to Mexico

–

MAX WITH 3-5 PAGES.

介绍墨西哥

  -西班牙语

-联邦国家

-11人口大国

-（1）促进经济增长；（2）吸引外资；（3）提供更多的就业机会；（4）吸收先进技术和管理经验。

-刺激了经济的增长。自1995年从金融危机中恢复以来，墨西哥经济增长率一直高于整个地区。1996-2002年其年均增长率为4％，高出阿根廷（增长率-0.3％）、巴西（2.0％）和智利（3.7％）。2005年，墨西哥经济增长了3％。

-　(2).降低了通货膨胀率。

　　(3).促进了对外贸易的增长。经过10年的发展，NAFTA成员国之间的货物贸易额迅速增长。贸易额翻了一番，从1993年的3060亿美元增长到2002年的6210亿美元 。变化最明显的是墨西哥在美国贸易中的比重从9.0%上升到13.5%，墨对美出口额由1994年的510.6亿美元扩大到2002年的1430亿美元，占全美进口额的比重从6.9％上升到了11.0％。

　　(4).吸收大量外资。1994年以来，墨西哥共获得1240亿美元的外国投资。平均每年吸纳120亿美元的外国直接投资。美加在墨西哥外资中的比重也有所增长。从1993年到2001年，美墨FDI存量从160亿美元增长到640亿美元，增长了288%，远高于同期美对非成员国FDI增长的169%。从1990年到2001年，墨西哥占美国FDI流出的比例从2.2%上升到2.9%，占加拿大FDI流出的比例从0.2%增长到1%；美国占墨西哥FDI流入的比例从62.9%上升到65%；加拿大占墨西哥FDI流入的比例从1%左右增长到3.3%。北美贸易伙伴对墨西哥FDI流入的份额相应从63.9%增加到68.3%。流入墨西哥的FDI主要是通过建立分公司进行生产和加工。这不仅可以利用当地廉价的劳动力，还可以节约由便利的运输和税收优惠带来的交易成本。因此，FDI最密集的是汽车及其零部件，以及电器制造等其它加工制造业。加工制造占墨西哥吸收FDI的12.6%。正是因为这一原因，墨西哥已经成为美国最大的电视出口国，和仅次于加拿大的汽车出口国。

　　(5). NAFTA加强了美国和墨西哥之间生产和加工的一体化。不过迄今为止，美墨生产一体化的范围还是有限的，一体化的行业主要集中在电器、汽车和服装这几个行业。NAFTA建立以后，由于墨的劳工便宜，对美出口税率又低，所以美国大公司纷纷将汽车、电器、纺织等需要大量劳工的加工环节搬到墨西哥，然后将产品返销美国。美墨生产一体化带有明显的垂直的产业内分工的特点。服装和汽车自建立贸易区后已经成为高度一体化的行业。这主要得益于NAFTA的“原产地规则”。随墨西哥产业升级，电器设备的贸易往来增长迅猛。

第7大汽车生产国

2. National economy 

Price Index

AS

Aggregate output in the last 40 year (qy)

Different parts of output,  C, G, X, M, NE=X-M, I 

Price index of these sector 

(OCED MEXICO) 20-40YEAR ECONOMY GROWTH FOR MEICO selected issued

“mexico economic perspective 40 year”

https://fas.org/sgp/crs/row/RL32934.pdf

-price and quantity

Quanity/Price

> summary(MexY[,c(“pc”,”pg”,”pi”,”pm”,”py”)])

       pc             pg              pi             pm             py      

 Min.   :   1   Min.   :    1   Min.   :   1   Min.   :   1   Min.   :   1  

 1st Qu.:   7   1st Qu.:   10   1st Qu.:   9   1st Qu.:   9   1st Qu.:   8  

 Median :1038   Median : 1276   Median :1011   Median : 923   Median :1040  

 Mean   :2309   Mean   : 3896   Mean   :2357   Mean   :1848   Mean   :2439  

 3rd Qu.:4521   3rd Qu.: 7535   3rd Qu.:4593   3rd Qu.:3389   3rd Qu.:4748  

 Max.   :7310   Max.   :14442   Max.   :7792   Max.   :5787   Max.   :7823  

>

pg highest, om lowest 

Quantity figure

Px and pm due to internation completion

3. Input 

Labour put (ql)

Price index of laour input

Efficiency of production: dr (depreciation rate), nominal capital-output ratio (vkyr)  real capital-output ratio (kyr)

-pg higest(govt)

-px&pm

-Share

-Input

       dr             kyr           vkyr    

 Min.   :0.029   Min.   :2.2   Min.   :1.6  

 1st Qu.:0.030   1st Qu.:2.6   1st Qu.:2.0  

 Median :0.031   Median :3.4   Median :3.0  

 Mean   :0.032   Mean   :3.2   Mean   :2.7  

 3rd Qu.:0.035   3rd Qu.:3.7   3rd Qu.:3.3  

 Max.   :0.038   Max.   :4.1   Max.   :3.7  

Capital stock  (qk) and capital service (qks)

4. TFP, labour productivity, real wage and real GDP per capita 

(the change of living standard, production efficiency)

Mexico crisis: 1982 (debt crisis)

              1995 currency crisis (Asian financial crisis)

5. Share of capital and labour ratio (sk and sl) 

The regression equation:

log(Y_t) = log(A₀) + γ ∗ t + α log(K_t) + β log(L_t) + ε_t 

In my data, Quantity of physical capital is “stateside significant” , it means that once Mexico improve the capital, the economy in Mexico will improve. However, the data shows that Labor is insignificant that means that even the labor increasing is it not going to have any economy impact for Mexico. Mexico is a huuge population country, and since 1982, the Asian Crisis affected Mexico’s economy, and the date of “Factor shares in Capital” totally upside down the share capital and share labor.  After 1982, Mexico become more depend on Capital then Labour.

6. Conclusion 

Reference

Central intelligent agency.2017. The World Factbook :Meixco 

https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html

https://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement(NAFTA)

https://atlas.media.mit.edu/en/profile/country/mex/http://www.bbc.com/news/world-latin-america-18095241