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The (un)lucky neighbour: Differences in export performance across Mexico's states

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  • Escobar Gamboa, Octavio Romano

Abstract

This paper studies the reasons behind the export performance of different Mexican states from 1994 to 2002. Mexican exports are divided into two components: (1) foreign market potential; and (2) supply capacity. Results suggest that states that experience an increase in supply capacity are, in most cases, also those with better export expansion. However, results suggest that in most cases, export growth is due mainly to an increase in US demand rather than to an improvement in the states' competitiveness to supply this demand. When looking to the determinants of supply capacity improvements, results suggest the presence of positive neighbouring effects.

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File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/10604/3/TheLuckyNeighboutPostprintVersion.pdf
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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/10604.

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Date of creation: 2010
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Publication status: Published in Papers in Regional Science, 2010, Vol. 89, no. 4. pp. 777-799.Length: 22 pages
Handle: RePEc:dau:papers:123456789/10604

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Keywords: NAFTA; Trade; Mexico; Spatial econometrics;

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References

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  1. de Sousa, José & Mayer, Thierry & Zignago, Soledad, 2012. "Market access in global and regional trade," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 1037-1052.
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  3. Thierry Mayer, 2009. "Market Potential and Development," Working Papers 2009-24, CEPII research center.
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  9. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  10. James P. LeSage & R. Kelley Pace, 2008. "Spatial Econometric Modeling Of Origin-Destination Flows," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 941-967.
  11. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
  12. Hanson, Gordon H., 1998. "Regional adjustment to trade liberalization," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 419-444, July.
  13. Robert A. Blecker, 2006. "Macroeconomic and Structural Constraints on Export-Led Growth in Mexico," Working Papers 2006-05, American University, Department of Economics.
  14. Thierry Mayer, 2008. "Market Potential and Development," Sciences Po publications 6798, Sciences Po.
  15. Kapoor, Mudit & Kelejian, Harry H. & Prucha, Ingmar R., 2007. "Panel data models with spatially correlated error components," Journal of Econometrics, Elsevier, vol. 140(1), pages 97-130, September.
  16. Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
  17. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
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Cited by:
  1. Régis Chenavaz & Octavio Escobar, 2012. "Effective area as a measure of land factor," Economics Bulletin, AccessEcon, vol. 32(3), pages 1962-1969.
  2. Escobar Gamboa, Octavio Romano, 2012. "Foreign direct investment (FDI) determinants and spatial spillovers across Mexico's states," Economics Papers from University Paris Dauphine 123456789/10605, Paris Dauphine University.

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