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Analyzing the export flow from Texas to Mexico

  • Andrew J. Cassey

From 1997 to 2008, Texas shipped 40 percent of its manufacturing exports to Mexico. This puts Texas-Mexico among the largest state-country trading relationships. But this share has been declining recently. A gravity equation cannot account for either of these facts, even though Texas and Mexico share a border. This positive contiguity effect is not unique in state export data. I study the features of the Texas-Mexico relationship to try to account for the size of the export flow and the recent decline in share. Data limitations prevent a full accounting, but the most likely feature is the changing source of maquiladora inputs from the United States to Asia

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File URL: http://www.dallasfed.org/assets/documents/research/staff/staff1003.pdf
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Article provided by Federal Reserve Bank of Dallas in its journal Staff Papers.

Volume (Year): (2010)
Issue (Month): Oct ()
Pages:

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Handle: RePEc:fip:feddst:y:2010:i:oct:n:11
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  1. Peter Egger, . "A Note on the Proper Econometric Specification of the Gravity Equation," WIFO Working Papers 108, WIFO.
  2. Cletus C. Coughlin & Dennis Novy, . "Is the International Border Effect Larger than the Domestic Border Effect? Evidence from U.S. Trade," Discussion Papers 09/29, University of Nottingham, GEP.
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  14. Andrew J. Cassey, 2012. "California'S Exports And The 2004 Overseas Office Closures," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 641-651, 07.
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