Mexico: Financial Growth direct foreign investment and its terms of trade

This research seeks to explain the reasons why the increases in foreign direct investment flows are not sufficient for the Mexican economy have sustained rates of growth. Although many factors may be, it is assumed that the problem lies in trade due to its low contribution to the economic boost in Mexico. Through a VAR (5) model using quarterly data from first quarter of 1980 to first quarter of 2010 with Gross Domestic Product, Foreign Direct Investment and Terms of Trade data, in the impulse-response analysis is that a shock random random foreign direct investment will not disrupt economic growth, but when a random shock in the terms of trade, the economy began a process of instability in the long term.