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The Impact of the US Automobile Crisis on Mexico’s Car and Truck Subsector

Author

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  • Jorge Eduardo Mendoza Cota

    (Investigador, Departamento de Estudios Económicos, El Colegio de la Frontera Norte. Tijuana, B.C., Mexico.)

Abstract

This paper analyzes the Mexican automobile and truck industries, and estimates the long run functional relationship between these industries and the automobile industry in the USA. The methodology consists of a cointegration analysis of the two series in the long run and the estimation of an autoregressive vector to evaluate the response of the Mexican automobile industry to shocks coming from the US automobile industry. The results show a long-run positive functional relationship between the US car industry and the Mexican car and truck industries, and also a short-term positive shock with four periods.

Suggested Citation

  • Jorge Eduardo Mendoza Cota, 2011. "The Impact of the US Automobile Crisis on Mexico’s Car and Truck Subsector," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 281-309, July-Dece.
    • Handle: RePEc:emc:ecomex:v:20:y:2011:i:2:p:281-309
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    More about this item

    Keywords

    car industry; economic integration; business cycle; cointegration analysis; time series.;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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