Relationship between production and foreign trade in Mexico: 2000-2015

Abstract

This paper shows the relationship between Mexico’s gross domestic product (GDP) and the country’s total trade volume, expressed in millions of dollars. The statement of the problem begins with a description of the situation of international trade in Mexico. According to the classical theory of international trade and the principle of absolute advantage described by Adam Smith, the global wealth of countries increases when they open up to foreign trade. A statistical analysis is carried out that empirically demonstrates the degree of association between the variable production (measured with the GDP) and foreign trade (volume of total trade) using the statistical and econometric method of correlation and linear regression.