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Determinants of industrial concentration in Mexico

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  • Izabel Diana Hernández González

    (Universidad Anáhuac México)

Abstract

This paper studies the factors influencing industrial concentration and the form in which such influence is affected by free trade. The analysis contrasts predictions of the international trade theories vs. those of the new economic geography (NEG). Findings indicate that the levels of industrial concentration have decreased since the eighties in 20% and that this behavior is explained mostly by the decrease of the economies of scale and the intensity in the use of national intermediate inputs. The main finding indicates a differential relation between concentration and the intensity in the use of national intermediate inputs, which originates in the decrease in the relative price of imported intermediate inputs associated with the start of North American Free Trade Agreement (TLCAN in Spanish), generating the disintegration of the productive chains and the decrease in concentration levels.

Suggested Citation

  • Izabel Diana Hernández González, 2017. "Determinants of industrial concentration in Mexico," The Anahuac Journal, Business and Economics School. Anahuac University (Mexico)., vol. 17(1), pages 33-67, June.
    • Handle: RePEc:amj:journl:v:17:y:2017:i:1:p:33-67
    DOI: 10.36105/theanahuacjour.2017v17n1.02
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    More about this item

    Keywords

    Economic Geography; Industrial Concentration; Trade Liberalization; Models with Panel Data; Manufacturing Industry; Spatial Distribution; Gini Index.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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