IDEAS home Printed from https://ideas.repec.org/p/bdm/wpaper/2020-06.html
   My bibliography  Save this paper

Economic Integration Mexico-United States and Regional Performance in Mexico

Author

Listed:
  • Torre Cepeda Leonardo E.
  • Chapa Cantú Joana C.
  • González González Eva Edith

Abstract

Based on the World Input-Output Matrix 2016 estimated by Timmer et al. (2016), the Hypothetical Extraction Method is applied in a multi-country context to estimate Mexico's gross output and value added linked to the economic activity of the United States; and then the gross output and value added of the United States linked to Mexico's economic activity. Next, it is shown based on the Ghosh Regional Model how the value added of Mexico linked to the economic activity in the United States is allocated among its sectors and regions. The results capture the strong economic linkage between both economies at the aggregate level, as well as its sectoral concentration. The results also indicate that the Northern and Central regions of Mexico are those with the strongest link to the United States; followed by the Southern region, where the largest share of the oil industry is located.

Suggested Citation

  • Torre Cepeda Leonardo E. & Chapa Cantú Joana C. & González González Eva Edith, 2020. "Economic Integration Mexico-United States and Regional Performance in Mexico," Working Papers 2020-06, Banco de México.
    • Handle: RePEc:bdm:wpaper:2020-06
    as

    Download full text from publisher

    File URL: https://www.banxico.org.mx/publicaciones-y-prensa/documentos-de-investigacion-del-banco-de-mexico/%7B7554A6D1-ED34-F5BB-5F24-22E5D06BA61C%7D.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chiquiar, Daniel, 2005. "Why Mexico's regional income convergence broke down," Journal of Development Economics, Elsevier, vol. 77(1), pages 257-275, June.
    2. Fahd Boundi Chraki, 2017. "Análisis insumo-producto multirregional e integración económica del TLCAN. Una aplicación del método de extracción hipotética," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 40(114), pages 256-267, Septiembr.
    3. Guerra, Ana-Isabel & Sancho, Ferran, 2010. "Measuring energy linkages with the hypothetical extraction method: An application to Spain," Energy Economics, Elsevier, vol. 32(4), pages 831-837, July.
    4. Ian P.Cassar, 2017. "Assessing structural change in the Maltese economy via the application of a hypothetical extraction analysis," CBM Working Papers WP/01/2017, Central Bank of Malta.
    5. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133.
    6. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023.
    7. Yue-Jun Zhang & Xiao-Juan Bian & Weiping Tan, 2018. "The linkages of sectoral carbon dioxide emission caused by household consumption in China: evidence from the hypothetical extraction method," Empirical Economics, Springer, vol. 54(4), pages 1743-1775, June.
    8. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    9. Erik Dietzenbacher & Bart Los & Robert Stehrer & Marcel Timmer & Gaaitzen de Vries, 2013. "The Construction Of World Input-Output Tables In The Wiod Project," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 71-98, March.
    10. Alonso de Gortari, 2018. "Disentangling Global Value Chains," 2018 Meeting Papers 139, Society for Economic Dynamics.
    11. Jing Tian & Julio Lumbreras & Celio Andrade & Hua Liao, 2018. "Key Sectors in Carbon Footprint Responsibility at the City Level: A Case Study of Beijing," CEEP-BIT Working Papers 112, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    12. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen J., 2016. "An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release," GGDC Research Memorandum GD-162, Groningen Growth and Development Centre, University of Groningen.
    13. Lorenzo Caliendo & Fernando Parro, 2015. "Estimates of the Trade and Welfare Effects of NAFTA," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 1-44.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alonso de Gortari, 2018. "Disentangling Global Value Chains," 2018 Meeting Papers 139, Society for Economic Dynamics.
    2. Daniel Croner & Ivan Frankovic, 2018. "A Structural Decomposition Analysis of Global and NationalEnergy Intensity Trends," The Energy Journal, , vol. 39(2), pages 103-122, March.
    3. Ward, Hauke & Radebach, Alexander & Vierhaus, Ingmar & Fügenschuh, Armin & Steckel, Jan Christoph, 2017. "Reducing global CO2 emissions with the technologies we have," Resource and Energy Economics, Elsevier, vol. 49(C), pages 201-217.
    4. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data," Open Economies Review, Springer, vol. 30(3), pages 505-539, July.
    5. Ana Maria Santacreu & Michael Sposi & Jing Zhang, 2021. "What Determines State Heterogeneity in Response to US Tariff Changes?," Working Papers 2021-007, Federal Reserve Bank of St. Louis, revised 08 Mar 2023.
    6. Justin Caron & Thibault Fally & James Markusen, 2021. "Per capita income and the demand for skills," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 12, pages 251-268, World Scientific Publishing Co. Pte. Ltd..
    7. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    8. Rachel Griffith & Peter Levell & Agnes Norris Keiller, 2021. "Potential Consequences of Post‐Brexit Trade Barriers for Earnings Inequality in the UK," Economica, London School of Economics and Political Science, vol. 88(352), pages 839-862, October.
    9. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    10. Fontagné, Lionel & Santoni, Gianluca, 2021. "GVCs and the endogenous geography of RTAs," European Economic Review, Elsevier, vol. 132(C).
    11. Cappariello, Rita & Franco-Bedoya, Sebastian & Gunnella, Vanessa & Ottaviano, Gianmarco I. P., 2020. "Rising protectionism and global value chains: quantifying the general equilibrium effects," LSE Research Online Documents on Economics 108423, London School of Economics and Political Science, LSE Library.
    12. Luis Daniel Torres-Gonzalez & Jacobo Ferrer-Hernandez & Adrian Martınez, 2022. "On the Long-Run Neutrality of Profits-Wages Ratios in the Determination of International Relative Prices Under Absolute Advantages," Working Papers 2208, New School for Social Research, Department of Economics.
    13. Erik Dietzenbacher & Joaquim J.M. Guilhoto, Denise Imori, 2013. "The Role of Brazilian Regions in the Global Value Chain," Working Papers, Department of Economics 2013_15, University of São Paulo (FEA-USP).
    14. Oliver Krebs & Michael Pflüger, 2018. "How deep is your love? A quantitative spatial analysis of the transatlantic trade partnership," Review of International Economics, Wiley Blackwell, vol. 26(1), pages 171-222, February.
    15. Asada, Raphael & Stern, Tobias, 2018. "Competitive Bioeconomy? Comparing Bio-based and Non-bio-based Primary Sectors of the World," Ecological Economics, Elsevier, vol. 149(C), pages 120-128.
    16. Antrà s, Pol & Chor, Davin, 2017. "On the Measurement of Upstreamness and Downstreamness in Global Value Chains," CEPR Discussion Papers 12549, C.E.P.R. Discussion Papers.
    17. Bartłomiej Bajan & Joanna Łukasiewicz & Aldona Mrówczyńska-Kamińska, 2021. "Energy Consumption and Its Structures in Food Production Systems of the Visegrad Group Countries Compared with EU-15 Countries," Energies, MDPI, vol. 14(13), pages 1-24, July.
    18. repec:zbw:bofitp:2019_017 is not listed on IDEAS
    19. Daniel Lind, 2022. "The China Effect on Manufacturing Productivity in the United States and Other High-income Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 42, pages 33-62, Spring.
    20. Ward, Hauke & Steckel, Jan Christoph & Jakob, Michael, 2019. "How global climate policy could affect competitiveness," Energy Economics, Elsevier, vol. 84(S1).
    21. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.

    More about this item

    Keywords

    Hypothetical Extraction; Ghosh Input-Output Model; World Input-Output Matrix; Mexico; United States; Economic Integration;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bdm:wpaper:2020-06. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Subgerencia de desarrollo de sistemas (email available below). General contact details of provider: https://edirc.repec.org/data/bangvmx.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.