Access to International Funds and the Boom in Mexico after the Tequila Crisis: Is There Any Evidence from the Companies Quoted in the NYSE?

Abstract

The main goal of the present paper is to test the hypothesis that the Mexican economic boom of the second half of the 90s –which coincided with a post-Tequila credit crunch crisis– can be explained by Mexican firms with access to international financial markets financing their productive investments through international funds. Using a panel of Mexican firms quoted at the NYSE, we show that they neither significantly boosted their productive investments after the Tequila crisis nor relied on external funds.