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Intra-industry trade effects on Mexican manufacturing productivity before and after NAFTA

Author

Listed:
  • Rene Cabral
  • Andre Varella Mollick

Abstract

This paper examines the effects of intra-industry imports on total factor productivity (TFP). Employing a new sample of 25 Mexican manufacturing industries with annual data from 1984 to 2000, interesting panel data results emerge. First, we find the positive impact of intra-industry imports on productivity to be substantially larger after NAFTA. Second, relatively labor-intensive industries have benefited the most from these spillovers. Third, these results are very robust to business cycle controls and estimation methods. Our findings suggest that the expansion of technology in differentiated products has increased the technology spillovers from the US and Canada into Mexico.

Suggested Citation

  • Rene Cabral & Andre Varella Mollick, 2011. "Intra-industry trade effects on Mexican manufacturing productivity before and after NAFTA," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(1), pages 87-112.
    • Handle: RePEc:taf:jitecd:v:20:y:2011:i:1:p:87-112
    DOI: 10.1080/09638190902836014
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    Citations

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    Cited by:

    1. René Cabral & Jorge Alberto Alvarado, 2021. "The Role of FDI on Exports Performance: Evidence from the Mexican States," International Regional Science Review, , vol. 44(6), pages 684-708, November.
    2. Cabral, René & Mollick, André Varella, 2017. "Mexican real wages and the U.S. economy," Economic Modelling, Elsevier, vol. 64(C), pages 141-152.
    3. René Cabral & André Mollick, 2012. "Mexico’s regional output convergence after NAFTA: a dynamic panel data analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(3), pages 877-895, June.
    4. Torre Cepeda, Leonardo E. & Ramos, Luis Fernando Colunga, 2015. "Patterns of TFP growth in Mexico: 1991–2011," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 398-420.
    5. Colunga Ramos Luis Fernando & Torre Cepeda Leonardo E., 2015. "Patterns of Total Factor Productivity Growth in Mexico: 1991-2011," Working Papers 2015-24, Banco de México.
    6. Hoang, Viet, 2019. "The Dynamics of Agricultural Intra-Industry Trade: A Comprehensive Case Study in Vietnam," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 74-82.
    7. Sarra Ben Yahmed & Sean Dougherty, 2017. "Domestic regulation, import penetration and firm-level productivity growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(4), pages 385-409, May.
    8. Mihai Nica, 2021. "Economic development and business creation," Economic Change and Restructuring, Springer, vol. 54(1), pages 219-239, February.

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