Mexico - Future directions of industrial strategy
UMA Engineering Ltd., Calgary, Canada | AGRA Earth & Environmental, Calgary, Canada
Mexico is presently experiencing the most severe economic and financial crisis in its modern history. GDP growth has virtually stopped, and investment has declined substantially. An externally-oriented industrial sector is needed within the macroeconomic framework for maintaining a real exchange rate which will favor domestic production of tradeables and achieving a structure of factor prices reflecting resource availabilities. The main components of longer-term strategy should include: (i) encouragement of export growth and promotion; (ii) review of the impact of direct subsidies and fiscal incentives provided to industry and of direct industrial investment policy, particularly as related to employment generation and capital intensity; and (iii) growth in employment opportunities and reduction in unemployment, requiring job creation in the informal sector and a better trained labor force. This report focuses on the industrial sector, but attempts to take into account the linkages between macroeconomic and sectoral behaviour.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by World Bank
