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

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  • Octavio R. Escobar Gamboa

Abstract

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. Resumen Este artículo estudia las razones que gobiernan el desempeño en la exportación de los diferentes estados mexicanos entre 1994 y 2002. Las exportaciones mexicanas tienen dos componentes: (1) potencial para el mercado exterior; y (2) capacidad de oferta. Los resultados sugieren que los estados que experimentan un aumento en la capacidad de su oferta son, en la mayoría de ocasiones, también aquellos con una mejor expansión de la exportación. Sin embargo, los resultados sugieren que en la mayoría de casos el crecimiento de la exportación se debe principalmente a un aumento en la demanda por parte de los EE.UU., en vez de una mejora en la competitividad de los estados para abastecer esta demanda. Al examinar los determinantes de la mejora de la capacidad de oferta, los resultados sugieren la presencia de efectos de vecindad positivos.

Suggested Citation

  • Octavio R. Escobar Gamboa, 2010. "The (un)lucky neighbour: Differences in export performance across Mexico's states," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 777-799, November.
  • Handle: RePEc:bla:presci:v:89:y:2010:i:4:p:777-799
    DOI: 10.1111/j.1435-5957.2010.00291.x
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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. repec:dau:papers:123456789/10605 is not listed on IDEAS

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