Moneda funcional, inversión y generación de empleos en México

Abstract

Functional currency, investment, and employment in Mexico

i) Objective. To estimate the effect on investment and employment of adopting a functional currency scheme in Mexico. ii) Methodology. Using quarterly time series from 2000 to 2019, a model is estimated to determine the effect of the drop in the interest rate on investment, caused by the adoption of a functional currency. By applying the input-output matrix, the effect on employment at the national level is then determined. iii) Results. With the reduction of one percent in the real interest rate, investment would increase by 23.9 billion pesos. iv. Recommendations. Review the tax regime of companies operating in international markets to assess the functional currency regime. v. Limitations and implications. Modifying the fiscal regulations of multinational companies can promote economic growth and job creation. vi. Originality. The study estimates a – priori the effect of the introduction of a functional currency on a national economy. vii. Conclusions. The estimated impact of the functional currency regime in Mexico would be an increase in the national product by 35.6 billion pesos, creating 72.9 thousand additional jobs.