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Analyzing the export flow from Texas to Mexico

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  • Andrew J. Cassey

Abstract

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

Suggested Citation

  • Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.
  • Handle: RePEc:fip:feddst:y:2010:i:oct:n:11
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    File URL: http://www.dallasfed.org/assets/documents/research/staff/staff1003.pdf
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    References listed on IDEAS

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    Cited by:

    1. Tomasz Brodzicki & Stanislaw Uminski, 2013. "International trade relations of enterprises established in Poland's regions: gravity model panel estimation," Working Papers 1301, Instytut Rozwoju, Institute for Development.
    2. Piotr Ciżkowicz & Andrzej Rzońca & Stanisław Umiński, 2013. "The determinants of regional exports in Poland -- a panel data analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 25(2), pages 206-224, June.

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