IDEAS home Printed from https://ideas.repec.org/p/emx/ceedoc/2019-05.html
   My bibliography  Save this paper

Import demand for intermediate goods in Mexico: 1993-2018

Author

Listed:
  • José Antonio Romero Tellaeche

    (El Colegio de México)

  • Rodrigo Aliphat Rodríguez

    (UNAM)

Abstract

In this paper, we study the import of intermediate goods (MIG) for México, these imports represent 80% of total imports, and they are close related to exports and production for domestic demand. We first try to estimate a VEC model using MIG, exports, domestic demand, and real exchange rates but we find impossible to estimate directly due to problems of endogeneity between MIG, exports and domestic demand. We construct instrumental variables for exports and domestic demand. But then we face multicollinearity problems between the instrumental variables. Therefore, we estimate two separate VECs one for MIG for exports and another for MIG for domestic demand. We find minimal possibilities to increase local content for exports, but we find hope in the production for domestic demand.

Suggested Citation

  • José Antonio Romero Tellaeche & Rodrigo Aliphat Rodríguez, 2019. "Import demand for intermediate goods in Mexico: 1993-2018," Serie documentos de trabajo del Centro de Estudios Económicos 2019-05, El Colegio de México, Centro de Estudios Económicos.
    • Handle: RePEc:emx:ceedoc:2019-05
    as

    Download full text from publisher

    File URL: https://cee.colmex.mx/dts/2019/DT-2019-5.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    VEC; imports; intermediate goods; Mexico;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    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:emx:ceedoc:2019-05. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ximena Varela (email available below). General contact details of provider: https://edirc.repec.org/data/cecolmx.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.