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Determinants of the Comparative Advantage and of the Performance of Mexico’s Manufacturing Exports During 1996-2005

  • Nicolás Amoroso
  • Daniel Chiquiar
  • Núria Quella
  • Manuel Ramos Francia

We analyze if the pattern of comparative advantages and the recent behavior of Mexican manufacturing exports, vis-à-vis its closest competitors, are related with productivity differentials or with differences in factor endowments. The relative abundance of relatively unskilled labor in Mexico locates this country in markets where other large countries with similar factor endowments, such as China, have entered rapidly. In comparison with China and other similar competitors, the most important determinant of Mexico´s comparative advantages and export performance seems to be productivity differentials. When Mexico is compared against other relevant competitors that have been able to rise faster in the value chain, Mexican export performance also seems to reflect its relatively small endowment of human capital.

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File URL: http://www.banxico.org.mx/publicaciones-y-discursos/publicaciones/documentos-de-investigacion/banxico/%7B9BD604BB-14B7-E452-4941-5507E274F495%7D.pdf
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Paper provided by Banco de México in its series Working Papers with number 2008-01.

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Date of creation: Feb 2008
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Handle: RePEc:bdm:wpaper:2008-01
Contact details of provider: Web page: http://www.banxico.org.mx

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  1. Debeare, Peter, 2003. "Relative Factor Abundance and Trade," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 589-610, June.
  2. Héctor Salgado Banda & Lorenzo E. Bernal Verdugo, 2007. "Multifactor Productivity and its Determinants: Al Empirical Analysis for Mexican Manufacturing," Working Papers 2007-09, Banco de México.
  3. Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers 2001-11, Department of Economics, Williams College.
  4. Norman Loayza & Pablo Fajnzylber & César Calderón, 2004. "Economic Growth in Latin America and The Caribbean: Stylized Facts, Explanations, and Forecasts," Working Papers Central Bank of Chile 265, Central Bank of Chile.
  5. Ben S. Bernanke & Refet S. Gürkaynak, 2002. "Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously," NBER Chapters, in: NBER Macroeconomics Annual 2001, Volume 16, pages 11-72 National Bureau of Economic Research, Inc.
  6. Lai, Huiwen & Zhu, Susan Chun, 2007. "Technology, endowments, and the factor content of bilateral trade," Journal of International Economics, Elsevier, vol. 71(2), pages 389-409, April.
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