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Determinants of the Comparative Advantage and of the Performance of Mexico’s Manufacturing Exports During 1996-2005

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Author Info
Nicolás Amoroso
Daniel Chiquiar
Núria Quella
Manuel Ramos Francia
Abstract

We analyze if the pattern of comparative advantages and the recent behavior of Mexican manufacturing exports, vis-à-vis its closest competitors, are related with productivity differentials or with differences in factor endowments. The relative abundance of relatively unskilled labor in Mexico locates this country in markets where other large countries with similar factor endowments, such as China, have entered rapidly. In comparison with China and other similar competitors, the most important determinant of Mexico´s comparative advantages and export performance seems to be productivity differentials. When Mexico is compared against other relevant competitors that have been able to rise faster in the value chain, Mexican export performance also seems to reflect its relatively small endowment of human capital.

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File URL: http://www.banxico.org.mx/documents/%7B9BD604BB-14B7-E452-4941-5507E274F495%7D.pdf
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Paper provided by Banco de México in its series Working Papers with number 2008-01.

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Date of creation: Feb 2008
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Handle: RePEc:bdm:wpaper:2008-01

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Web page: http://www.banxico.org.mx
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Related research
Keywords: Revealed Comparative Advantage NAFTA Export Performance Productivity Heckscher-Ohlin Ricardian Theory of Trade

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F15 - International Economics - - Trade - - - Economic Integration
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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This page was last updated on 2008-8-7.


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