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The geographic concentration in Mexican manufacturing industries, an account of patterns, dynamics and explanations: 1988-2003

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  • Trejo Nieto , Alejandra Berenice

    () (University of East Anglia)

Abstract

This paper presents an examination of regional concentration levelsof individual industries in the Mexican manufacturing sector and its determinants.The shifts after NAFTA are particularly weighed up. We employ state level dataof manufacturing output and employment (1988-2003). The data reveals that industrieshave become, on average, more dispersed in terms of both production andemployment. However among the most concentrated industries are those whichare highly linked to international markets. The concentrated, concentrating andlargest industries tend to locate in traditional industrial regions, in the north butincreasingly more in the Bajio. The regression analysis for the determinants ofconcentration shows consistency with a number of predictions such as the significanceof economies of scale, wages, exports and transport costs, which indicatesthat international trade plays a role in concentration profiles of industries.

Suggested Citation

  • Trejo Nieto , Alejandra Berenice, 2010. "The geographic concentration in Mexican manufacturing industries, an account of patterns, dynamics and explanations: 1988-2003," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 18, pages 37-60.
  • Handle: RePEc:ris:invreg:0061
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    Keywords

    Geographic concentration; localisation; trade; regional economics;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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