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The economic impact of trade openness on Mexico's indigenous peoples

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  • Haoying Wang
  • Rafael Garduno‐Rivera

Abstract

Trade liberalization and openness tend to increase regional inequalities, especially in developing economies, where infrastructure and institutions are immature. Trade‐induced inequalities often deteriorate into horizontal inequality across demographic groups and result in the peripheralization of the disadvantaged. This study aims to assess the impact of trade openness on Mexico's indigenous peoples using a difference‐in‐differences regression analysis framework. We show that Mexico's indigenous peoples have experienced significant disadvantages regarding employment opportunities and economic productivity (measured by gross value added) compared to their nonindigenous counterparts under the North American Free Trade Agreement. We conclude by discussing the relevant implications for policy design to address the disparity. La liberalización y la apertura del comercio tienden a aumentar las desigualdades regionales, especialmente en las economías en desarrollo, donde las infraestructuras y las instituciones son inmaduras. Las desigualdades inducidas por el comercio a menudo empeoran hacia desigualdades horizontales entre grupos demográficos y dan lugar a la periferización de los desfavorecidos. Este estudio trata de evaluar el impacto de la apertura comercial en los pueblos indígenas de México, para lo cuál utiliza un marco de análisis de regresión de diferencias en diferencias. Se demuestra que los pueblos indígenas de México han experimentado desventajas significativas en cuanto a oportunidades de empleo y productividad económica (medida por el valor añadido bruto) en comparación con sus homólogos no indígenas en el marco del Tratado de Libre Comercio de América del Norte. Se concluye con una deliberación sobre las implicaciones pertinentes para el diseño de políticas que aborden la disparidad. 貿易の自由化と開放は、特にインフラや制度が未熟な発展途上国において、地域的不平等を拡大させる傾向がある。貿易に起因する不平等は、人口集団全体の水平的不平等へと悪化し、不利な地域の周辺化をもたらす。本稿では、差分の差分による回帰分析のフレームワークを用いて、貿易の開放がメキシコの先住民族に与える影響を評価することを目的としている。メキシコの先住民族は、非先住民族と比較して、北米自由貿易協定の下で雇用機会と経済生産性(総付加価値で測定)に関して大きな不利益を経験してきたことが示される。最後に、分断に対処するための政策設計に重要なインプリケーションを考察する。

Suggested Citation

  • Haoying Wang & Rafael Garduno‐Rivera, 2023. "The economic impact of trade openness on Mexico's indigenous peoples," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(7), pages 1612-1624, September.
  • Handle: RePEc:bla:rgscpp:v:15:y:2023:i:7:p:1612-1624
    DOI: 10.1111/rsp3.12700
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