<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>1665-5346</journal-id>
<journal-title><![CDATA[Revista mexicana de economía y finanzas]]></journal-title>
<abbrev-journal-title><![CDATA[Rev. mex. econ. finanz]]></abbrev-journal-title>
<issn>1665-5346</issn>
<publisher>
<publisher-name><![CDATA[Instituto Mexicano de Ejecutivos de Finanzas A.C.]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S1665-53462024000300003</article-id>
<article-id pub-id-type="doi">10.21919/remef.v19i3.1052</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[An appraisal of Thirlwall-Hussain model: Capital flows and economic dynamics in Mexico, 1994-2023]]></article-title>
<article-title xml:lang="es"><![CDATA[Una evaluación del modelo Thirlwall-Hussain: flujos de capital y crecimiento económico en México, 1994-2023]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Perrotini Hernández]]></surname>
<given-names><![CDATA[Ignacio]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Cuevas Ahumada]]></surname>
<given-names><![CDATA[Víctor M.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,Universidad Nacional Autónoma de México  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Mexico</country>
</aff>
<aff id="Af2">
<institution><![CDATA[,Universidad Autónoma Metropolitana  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Mexico</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>09</month>
<year>2024</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>09</month>
<year>2024</year>
</pub-date>
<volume>19</volume>
<numero>3</numero>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_arttext&amp;pid=S1665-53462024000300003&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_abstract&amp;pid=S1665-53462024000300003&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_pdf&amp;pid=S1665-53462024000300003&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract The present paper empirically assesses the role of capital flows in the output dynamics of the Mexican economy over the period 1994-2023. We hypothesize that capital flows have helped sustain a long-term economic growth rate that exceeds what is warranted by Mexico&#8217;s current account equilibrium. Our main contribution is to furnish empirical evidence supporting the Thirlwall-Hussain (1982) hypothesis. That is, capital flows are needed to finance the current account gap of economies growing beyond their means. Our analysis represents the first empirical test ever of such a model for the case of Mexico. Furthermore, our estimates from a vector error-correction model show that capital flows (FDI), imports and exports are intimately linked. Moreover, exports and FDI together provide the foreign exchange used to cope with technological and capital goods dependence. We conclude that finance is the most salient variable of overall economic dependence along the global supply chains. The main limitation of our study is that further empirical comparative analysis is required before generalizations can be reasonably made, a task for future endeavors.]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen Este trabajo evalúa empíricamente el papel de los flujos de capital en el crecimiento económico de México durante el período 1994-2023. La hipótesis central es que los flujos de capital contribuyen a mantener un crecimiento de largo plazo mayor al que se justificaría con equilibrio en la cuenta corriente. La principal contribución es proveer evidencia consistente con la hipótesis Thirlwall-Hussain (1982). Es decir, se requieren entradas de capital para financiar los déficits en la cuenta corriente de las economías que crecen más allá de sus medios. Este estudio es pionero en contrastar este modelo para el caso de México. Nuestras estimaciones, con base en un modelo de corrección de errores, muestran que los flujos de capital, las exportaciones y las importaciones están estrechamente ligadas. Las exportaciones y la inversión extranjera directa proveen las divisas necesarias para enfrentar la dependencia de tecnología y bienes de capital. La conclusión es que el financiamiento es una variable clave de la dependencia a lo largo de las cadenas globales de valor. La principal limitación es que se requiere investigación adicional para generalizar nuestros resultados.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[Balance of payments]]></kwd>
<kwd lng="en"><![CDATA[capital flows]]></kwd>
<kwd lng="en"><![CDATA[growth]]></kwd>
<kwd lng="en"><![CDATA[Mexico]]></kwd>
<kwd lng="en"><![CDATA[VEC models]]></kwd>
<kwd lng="es"><![CDATA[Balanza de pagos]]></kwd>
<kwd lng="es"><![CDATA[flujos de capital]]></kwd>
<kwd lng="es"><![CDATA[crecimiento]]></kwd>
<kwd lng="es"><![CDATA[México]]></kwd>
<kwd lng="es"><![CDATA[modelos VEC]]></kwd>
</kwd-group>
</article-meta>
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<ref id="B30">
<nlm-citation citation-type="journal">
<person-group person-group-type="author">
<name>
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<given-names><![CDATA[M.]]></given-names>
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<article-title xml:lang=""><![CDATA[Technology, finance and dependency: Latin American radical political economy in retrospect]]></article-title>
<source><![CDATA[Review of Radical Political Economics]]></source>
<year>2006</year>
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</article>
