Structural Change in Mexico and Ecuador: The Role of National and Foreign Direct Investment, and Economic Openness

Abstract

This paper seeks to analyze the process of structural change generated by Foreign Direct Investment (FDI), domestic investment and economic liberalization in two emerging countries, Mexico and Ecuador. The results indicate that in both countries there have been changes in their productive structures in the first decade of the 21st century, caused by different factors. In Ecuador, trade openness and private investment have been important elements for structural change, while in Mexico structural change has also been influenced by FDI and public investment.