The Role of Mexico in Global Value Chains: Prospects and Obstacles
https://doi.org/10.21686/2410-7395-2019-4-85-101
Abstract
The article describes the impact of global value chains on the economic development of countries. Trade liberalization has made Mexico one of the leading countries in the world with a production economy and an attractive market for FDI. Nevertheless, Mexico has difficulties due to the uneven development of economic sectors, the low level of R & D expenditures, the lack of sufficient coordination in the preparation and application of skilled labor, and the level of remuneration. The key aspects of Mexico’s current export orientation and its strong link to regional international supply chains are industrial development and job creation programs on the northern border of the country, the so-called maquiladoras industry. The close integration of the dynamically developing sectors of the Mexican economy into the global value chains of North America made it difficult to increase domestic exports. Mexican companies integrated into these chains, as a rule, are highly dependent on imported resources, which limits their contribution to the development of a dynamic and properly structured domestic industry. The article analyzes the main economic indicators of Mexico, which determine the country's involvement in global value chains, and identify the strengths and weaknesses of the country to further expand its international trading activities.
About the Author
Mariya V. Makarova
Plekhanov Russian University of Economics
Russian Federation
Russian Federation
Post Graduate Student of the Department of World Economy of the PRUE.
36 Stremyanny Lane, Moscow, 117997, Russian Federation.
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Review
For citations:
Makarova M.V. The Role of Mexico in Global Value Chains: Prospects and Obstacles. International Trade and Trade Policy. 2019;(4):85-101. (In Russ.) https://doi.org/10.21686/2410-7395-2019-4-85-101
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