Logo
Munich Personal RePEc Archive

Resources, trade and debt: the case of Mexico

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.

[thumbnail of MPRA_paper_8074.pdf]
Preview
PDF
MPRA_paper_8074.pdf

Download (6MB) | Preview

Abstract

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 .

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.