ABSTRACT
This chapter uses the Mexican experience to examine the relationship between economic growth and economic liberalization. It describes the case that the export-led growth model works to the extent that Mexico has become one of the main exporting countries in the world and one of the largest recipients of foreign capital. The chapter argues that despite its ability to attract foreign capital, the export model has not resulted in higher levels of economic growth. Mexico's foreign debt crisis of the 1980s obliged the government to restructure the country's economy and adopt the export promotion model to attract global capital. The chapter explores the case that the negative impacts of export-led development include structural polarization, which has serious implications, especially for poverty. The disparity between social development and economic productivity results from a model, which is incapable of creating well paying jobs in the formal sector.
