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The weak linkages between processing exports and the internal economy. The Mexican case

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  • Gerardo Fujii-Gambero
  • Rosario Cervantes-Martínez

Abstract

The aim of this paper is to show the internal linkages of manufacturing exports and the rest of the economy. We take the Mexican economy as the case of study. Manufacturing exports constitute the most of exports and processing exports (maquiladora) represent an important part of them. We consider the indirect domestic value added contained in Mexican manufacturing exports, dividing them into exports from the internal economy and the maquiladora industry. We show that the internal backward linkages of exports are weak, that only a few sectors produce inputs for exports, and that the forward linkages are weak too because the Mexican maquiladora industry assembles imported parts and components into final goods for export. The actual picture is quite different from that presented by Hirschman [(1958) The Strategy of Economic Development. New Haven, Yale University Press], who argued that the manufacturing sector plays a key role to promote economic growth because of its dense forward and backward internal linkages.

Suggested Citation

  • Gerardo Fujii-Gambero & Rosario Cervantes-Martínez, 2017. "The weak linkages between processing exports and the internal economy. The Mexican case," Economic Systems Research, Taylor & Francis Journals, vol. 29(4), pages 528-540, October.
    • Handle: RePEc:taf:ecsysr:v:29:y:2017:i:4:p:528-540
    DOI: 10.1080/09535314.2017.1351332
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    References listed on IDEAS

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    1. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness [Who captures value in global supply chains?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(76), pages 613-661.
    2. He, Dong & Zhang, Wenlang, 2010. "How dependent is the Chinese economy on exports and in what sense has its growth been export-led?," Journal of Asian Economics, Elsevier, vol. 21(1), pages 87-104, February.
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    Cited by:

    1. Martha G. Alatriste-Contreras & Igor Lugo, 2022. "Strategic sectors and the diffusion of the effect of a shock in Mexico for 2008 and 2012," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-23, December.
    2. Martha G. Alatriste-Contreras & Martín Puchet Anyul, 2021. "The Spreading of Shocks in the North America Production Network and Its Relation to the Properties of the Network," Mathematics, MDPI, vol. 9(21), pages 1-19, November.

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