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Technology and endowments as determinants of comparative advantage: Evidence from Mexico

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  • Amoroso, Nicolás
  • Chiquiar, Daniel
  • Ramos-Francia, Manuel

Abstract

We analyze whether the pattern of Mexico's comparative advantages in manufacturing trade flows, vis-à-vis its closest competitors, are related with productivity differentials (Ricardian hypothesis) or with differences in factor endowments (Heckscher-Ohlin hypothesis). The results suggest that Heckscher-Ohlin determinants tend to be more relevant than labor productivity differentials to explain the differences in the export patterns between Mexico and its competitors. This result holds even when we restrict the analysis to Mexico and other countries with relatively small differences in factor endowments, although in this case Ricardian comparative advantages gain some relevance.

Suggested Citation

  • Amoroso, Nicolás & Chiquiar, Daniel & Ramos-Francia, Manuel, 2011. "Technology and endowments as determinants of comparative advantage: Evidence from Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 22(2), pages 164-196, August.
  • Handle: RePEc:eee:ecofin:v:22:y:2011:i:2:p:164-196
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chiquiar Daniel, Covarrubias Enrique, Salcedo Alejandrina, 2017. "Labor market consequences of trade openness and competition in foreign markets," Working Papers 2017-01, Banco de México.
    2. Daniel Chiquiar & Manuel Ramos Francia, 2009. "Competitiveness and Growth of the Mexican Economy," Working Papers 2009-11, Banco de México.
    3. Rangel González, Erick & Torre Cepeda, Leonardo E., 2015. "Determinants of the cost of starting a business in Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 430-449.

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