IDEAS home Printed from
   My bibliography  Save this book

The Emerging Integration of the California-Mexico Economies


  • Shatz, Howard
  • Lopez-Calva, Luis Felipe


This volume examines the many ways in which California and Mexico are integrating, focusing in particular on trade and foreign direct investment. Trade links between Mexico and California are deep, in the sense that the total value of traded goods is high, and broad, in the sense that many different types of goods are traded. California exports to Mexico are more diverse across product classes than California exports to the rest of the world. In addition, they embody less skill than do California exports to the rest of the world, implying that trade with Mexico has provided greater opportunity to production workers than has trade with the rest of the world. Between 2000 and 2002, more than 200,000 California workers each year produced exports to Mexico — 17 percent of all export-related jobs in the state. Foreign direct investment (FDI) between California and Mexico — that is, cross-border investment used to establish or control a business — has also increased dramatically in recent years. Many Mexican-owned subsidiaries in California are in wholesale and retail trade, whereas 55 percent of California-owned subsidiaries in Mexico are in the manufacturing sector. In addition to their analysis, the authors suggest a number of policy options that might further the economic integration of Mexico and California. They also note that whatever policies the state chooses, devoting more attention to the border area is a worthwhile starting point because the infrastructure of this region is so strongly affected by — and so strongly affects — the economic interaction of California and Mexico.

Suggested Citation

  • Shatz, Howard & Lopez-Calva, Luis Felipe, 2004. "The Emerging Integration of the California-Mexico Economies," PPIC Research Reports, Public Policy Institute of California, number camex, dez..
  • Handle: RePEc:ppi:ppirpt:camex

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ppi:ppirpt:camex. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.