Advanced Search
MyIDEAS: Login

Synchronization of Economic Activity between Mexico and the US: What are the causes?

Contents:

Author Info

  • Ramón A. Catillo Ponce

    ()
    (California State University, Los Angeles, Department of Economics and Statistics, and Universidad Autónoma de Baja California, Facultad de Economía y Relaciones Internacionales. 5151 State University Drive, Los Angeles, CA 90032 USA)

  • Rogelio Varela Llamas

    ()
    (Facultad de Economía y Relaciones Internacionales. Calzada Universidad No. 14418 Mesa de Otay, Tijuana Baja California, México.)

  • Juan M. Ocegueda

    ()
    (Facultad de Economía y Relaciones Internacionales. Calzada Universidad No. 14418 Mesa de Otay, Tijuana Baja California, México.)

Registered author(s):

    Abstract

    Using data on manufacturing production for the entire industry and 8 of its 9 divisions, we find little evidence of synchronization between manufacturing output in Mexico and the US. Hence, it is unlikely that the synchronization of the business cycles of these two countries emerged as the result of the synchronization of economic activity in the manufacturing industry, as previous studies have suggested. Given these results, we propose two alternatives for explaining business cycles synchronization: the dynamics of the gross domestic product of the service sector and aggregate consumption. We show that both Mexican variables share common trends and common cycles with their US counterparts. We recommend further research to evaluate how these aggregates have contributed to the synchronization of the business cycles in Mexico and the US.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.rae-ear.org/index.php/rae/article/view/317
    Download Restriction: no

    Bibliographic Info

    Article provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its journal Revista de Analisis Economico.

    Volume (Year): 25 (2010)
    Issue (Month): 1 (June)
    Pages: 15-48

    as in new window
    Handle: RePEc:ila:anaeco:v:25:y:2010:i:1:p:15-48

    Contact details of provider:
    Postal: Erasmo Escala 1835, 6500620 Santiago
    Phone: (562) 692-0265
    Fax: (562) 692-0303
    Email:
    Web page: http://www.economia.uahurtado.cl/
    More information through EDIRC

    Order Information:
    Email:

    Related research

    Keywords: Synchronization; common trends; common cycles; manufacturing; consumption; service sector.;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ila:anaeco:v:25:y:2010:i:1:p:15-48. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcela Perticara).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.