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The financing of economic growth and development: the case of Mexico

Warman, Fanny (1993) The financing of economic growth and development: the case of Mexico. Doctor of Philosophy (PhD) thesis, University of Kent. (doi:10.22024/UniKent/01.02.86187) (KAR id:86187)


This thesis examines general and specific aspects of the financing of the Mexican economy during the 1960-1990 period from both internal and external sources. The thesis focuses on two fundamental questions, the first of which is the analysis of the interrelationship between financial variables and real variables of the economy in order to assess the scope of the financial liberalisation policy being currently implemented in Mexico. Secondly, the thesis examines the impact of foreign capital flows on the domestic economy and the extent to which the expansion of the economy is constrained by the balance of payments.

Following a general description of the Mexican economy presented in chapter one, which focuses on the evolution of financial variables and the financial policy implemented during the 1960-1990 period, chapter two analyses the theory of financial liberalisation, the hypothesis of which are tested for Mexico in chapters three and four. Chapter three examines the effects of financial variables, especially of real interest rates, on the level of total savings, financial savings, the level of investment, and economic growth. Chapter four takes into consideration the hypothesis that the allocation of resources through market forces under a liberalised financial system improves the productivity of investment. For this purpose, the chapter analyses the role of the financial sector under a liberalised environment and then attempts to measure the productivity of both private and public investment and examines the relationship between them.

The theoretical and empirical effects of foreign capital inflows on domestic savings, investment and economic growth are examined in chapter five; in this context, the chapter develops a model in which both the effects of inflows and outflows of foreign capital are considered in order to estimate the net effect of foreign borrowing on economic growth. Finally, chapter six finds that the long-run rate of growth of the Mexican economy is closely approximated by the balance of payments equilibrium growth rate. Conclusions to be drawn from this thesis are presented in chapter seven.

Item Type: Thesis (Doctor of Philosophy (PhD))
DOI/Identification number: 10.22024/UniKent/01.02.86187
Additional information: This thesis has been digitised by EThOS, the British Library digitisation service, for purposes of preservation and dissemination. It was uploaded to KAR on 09 February 2021 in order to hold its content and record within University of Kent systems. It is available Open Access using a Creative Commons Attribution, Non-commercial, No Derivatives ( licence so that the thesis and its author, can benefit from opportunities for increased readership and citation. This was done in line with University of Kent policies ( If you feel that your rights are compromised by open access to this thesis, or if you would like more information about its availability, please contact us at and we will seriously consider your claim under the terms of our Take-Down Policy (
Uncontrolled keywords: Economics; economic theory; Mexico
Subjects: H Social Sciences > HB Economic Theory
SWORD Depositor: SWORD Copy
Depositing User: SWORD Copy
Date Deposited: 29 Oct 2019 16:33 UTC
Last Modified: 18 Nov 2021 11:58 UTC
Resource URI: (The current URI for this page, for reference purposes)

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