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The Relative Importance of the Service Sector in the Mexican Economy: A Time Series Analysis

Author

Listed:
  • Ramón A. Castillo Ponce

    () (California State University)

  • Carlos Alberto Flores Sánchez

    () (Universidad Autónoma de Baja California)

  • María de Lourdes Rodríguez Espinosa

    () (Universidad Tecnológica de la Mixteca)

Abstract

We conduct a study of the secondary and tertiary sectors with the goal of highlighting the relative importance of services in the Mexican economy. We consider a time series analysis approach designed to identify the stochastic nature of the series, as well as to define their long-run and-short run relationships with Gross Domestic Product (GDP). The results of cointegration tests suggest that, for the most part, activities in the secondary and tertiary sectors share a common trend with GDP. Interestingly, the long-run elasticities of GDP with respect to services are on average larger than those with respect to secondary activities. Common cycle tests results identify the existence of common cycles between GDP and the disaggregated sectors, as well as with manufacturing, commerce, real estate and transportation. In this case, the short-run elasticities of secondary activities are on average larger than those corresponding to services.

Suggested Citation

  • Ramón A. Castillo Ponce & Carlos Alberto Flores Sánchez & María de Lourdes Rodríguez Espinosa, 2014. "The Relative Importance of the Service Sector in the Mexican Economy: A Time Series Analysis," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 80, pages 133-151, Enero-Jun.
  • Handle: RePEc:lde:journl:y:2014:i:80:p:133-151
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    File URL: http://aprendeenlinea.udea.edu.co/revistas/index.php/lecturasdeeconomia/article/view/18521/15914
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    More about this item

    Keywords

    Service sector; Mexico; cointegration; common cycles;

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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