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This paper sets out to use the bivariate VEC-EGARCH model with constant correlations to analyze the process by which the mean and volatility are transmitted between the crude futures markets and physical oil markets in Mexico. The results point to the existence of bilateral performance information transmission patterns with stronger effects from the futures markets to the physical markets, while the evidence for the effects of bilateral volatility transmission only exists between the oil futures and physical oil markets in Olmeca. The empirical findings are relevant to governmental authorities and consumers because they aid in designing cross-hedging strategies that mitigate exposure to the price risk in Mexican oil. [ABSTRACT FROM AUTHOR]

This paper analyzes a problem that proves crucial for the economic development of Mexico: slow economic growth and the subsequent inability to generate necessary employment. On the basis on Kaldorian growth theory, it is supposed that this problem is the result of economic policy errors, in essence the abandonment of active industrial policy in favor of structural change and economic development. Evidence is provided which highlights the high correlation between slow economic growth and slow growth in manufacturing output, a result consistent with the findings of other researchers. Having implemented an active industrial policy, the growth rate in the manufacturing sector would prove greater than that observed and would improve global economic development. Given the importance of this type of industrial policy, this paper outlines the reasons why the policy was abandoned and suggests that it be reinstated. [ABSTRACT FROM AUTHOR]

This topic should be viewed in the context of a few theoretical considerations on local and territorial development. This work will then look at the conclusions of some recent specialized contributions to the study of instability and disparities in Mexico and apply these to the focus of this paper. Studying Yucatan sheds light on the enormous limits and extreme inequalities of development in Mexico and its winding road to growth. Yucatan reflects how Mexico is lagging in employment and education, as well as the extent to which people are leaving rural areas, leading to greater urban concentration. In addition, it provides evidence of an increase in outsourcing, the decline of the maquiladora industry and the departure of local capital from its weak manufacturing sector. This work concludes with a broad critique of this type of development. [ABSTRACT FROM AUTHOR]