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Texas Comparative Advantage and Manufacturing Exports

In: Ten-Gallon Economy

Author

Listed:
  • Jesús Cañas
  • Luis Bernardo Torres Ruiz
  • Christina English

Abstract

Texas exports more than any other US state. While Texas has gained global market share in some industries, it has lost ground in others. We identify the comparative advantage of Texas’ exports and analyze how that has evolved over the past decade. We then look at Texas’ comparative advantage versus its primary global competitors and analyze domestic competitors based on how total factor productivity could have influenced export performance. The results suggest that Texas’ comparative advantage in manufacturing markets has increased as Texas industries have become more productive. In addition, the results show that relative wage differentials have allowed Texas to become more competitive and gain global market share vis-à-vis its closest domestic rivals.

Suggested Citation

  • Jesús Cañas & Luis Bernardo Torres Ruiz & Christina English, 2015. "Texas Comparative Advantage and Manufacturing Exports," Palgrave Macmillan Books, in: Pia M. Orrenius & Jesús Cañas & Michael Weiss (ed.), Ten-Gallon Economy, chapter 11, pages 159-179, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-53017-2_11
    DOI: 10.1057/9781137530172_11
    as

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