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US manufacturing imports from China and employment in the Mexican manufacturing sector

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  • Jorge Eduardo Mendoza Cota

Abstract

Since 2001 the Mexican manufacturing sector has experienced a reduced rate of growth. This study estimates the impact of US and Chinese industrial activity on the demand for labor in the sector. A time series cointegration model is developed using data on industrial activity, Chinese exports, wages and the peso: dollar exchange rate. The results show that exports from China to the USA and manufacturing wages have both affected labor demand negatively, while factors such as US industrial production and the exchange rate encourage manufacturing activity. ***** Desde el 2001 el sector manufacturero de México ha reducido su ritmo de crecimiento. Este artículo estima el impacto de la actividad industrial de China y los Estados Unidos en la demanda de empleo del sector manufacturero de México. Utilizando datos de la actividad industrial, las exportaciones de China, los salarios y la tasa de cambio dólar-peso, se establece un modelo de cointegración. Los resultados muestran que tanto las importaciones manufactureras chinas a los Estados Unidos como los salarios han afectado de manera negativa la demanda de trabajadores en la manufactura mexicana. Por otra parte, la actividad industrial de los Estados Unidos y el tipo de cambio peso-dólar estimulan la actividad manufacturera mexicana.

Suggested Citation

  • Jorge Eduardo Mendoza Cota, 2016. "US manufacturing imports from China and employment in the Mexican manufacturing sector," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 35(69), pages 583-613, April.
    • Handle: RePEc:col:000093:014603
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    References listed on IDEAS

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    4. MacKinnon, James G, 1996. "Numerical Distribution Functions for Unit Root and Cointegration Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 601-618, Nov.-Dec..
    5. Unknown, 1996. "1996 Winter," CWAE Newsletter, Agricultural and Applied Economics Association, Committee on Women in Agricultural Economics (CWAE), pages 1-12.
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    Cited by:

    1. Liliana Meza-González & Jaime Marie Sepulveda, 2019. "The impact of competition with China in the US market on innovation in Mexican manufacturing firms," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-21, December.
    2. Mariacristina Piva & Marco Vivarelli, 2018. "Technological change and employment: is Europe ready for the challenge?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 13-32, March.

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    More about this item

    Keywords

    Industrialization; Mexican manufactures; Chinese exports; labor demand; cointegration analysis;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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