Chichilnisky, Graciela and Heal, Geoffrey and McLeod, Darryl (1983): Resources, trade and debt: the case of Mexico. Published in: Global Analysis and Projections Division No. No. 1984-5 (September 1983): pp. 10-34.
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The paper studies a two-region economy , with two sectors and three factors of production : oil, capital and labor . The South exports oil in exchange for industrial goods from the North . There is a net capital inflow to the South . This equals the difference between its export revenues and import costs, and represents the South's indebtedness . This overseas borrowing finances the development of the oil sector : increased borrowing leads to higher oil supplies, to new levels of consumption and a new distribution of income in the South, as well as to new levels of exports from the North . The paper studies the macro impacts of changes in the value of the debt on both the borrowing and the lending regions . The results are illustrated by simulations with data for the U .S .A . and Mexico .
|Item Type:||MPRA Paper|
|Original Title:||Resources, trade and debt: the case of Mexico|
|Keywords:||Mexico; north-south; trade; debt; debt in developing nations; oil exportation; PEMEX; income distribution|
|Subjects:||F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy
|Depositing User:||Graciela Chichilnisky|
|Date Deposited:||04. Apr 2008 05:58|
|Last Modified:||14. Feb 2013 14:21|