Mexico’s two main economic policy challenges are to fully entrench stability and to remove remaining obstacles to economic growth, necessary to end poverty. The floating exchange rate policy continues to serve Mexico well. An essential part of Mexico’s stability is the resilience of the...

This 2005 Article IV Consultation highlights that the economic recovery in Mexico that began in mid-2003 has continued in 2005, though at a slower pace. A broad-based expansion of economic activity in 2004, driven by a rebound of private consumption and private investment, took growth up to 4.4...

EXECUTIVE SUMMARY Context: Mexico’s growth is recovering, supported by strong export demand, while inflation pressures remain contained. The implementation of wide-ranging structural reforms is expected to boost potential growth in the medium term. The current account deficit is projected to...

KEY ISSUES Outlook and risks: Growth is projected to reach 2.4 percent in 2014, while core inflation remains close to the target. Strong export demand has boosted manufacturing production and employment, and construction activity is starting to recover, supported by an expansion of public...

We use panel data on Mexican manufacturing plants to study the connection between plants’ responses to changes in the economic environment and their contributions to aggregate productivity growth in the period following the implementation of the North American Trade Agreement (NAFTA). In all...

It is argued that migration from Mexico to the US and its corresponding return migration are determined by international wage differentials and preferences for origin. We use a model of job search, savings and migration to show that job turnover is a crucial determinant of the migration process....

This paper examines whether family and community migration experience affect the probability of high school graduation in Mexico once unobserved heterogeneity is accounted for. Bivariate random effects dynamic probit models for cluster data are estimated to control for the endogeneity of...

The "common effect" model in program evaluation assumes that all treated individuals have the same impact from a program. Our paper contributes to the recent literature that tests and goes beyond the common effect model by investigating impact heterogeneity using data from the experimental...