Revealed comparative advantages and intra-industry trade changes between Mexico, China and the USA (original) (raw)
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Intra-Industry Trade between the United States and Latin American Countries
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This paper aims to explain the extent of vertical and horizontal intra-industry trade (IIT) in United State's foreign trade with 20 Latin American countries. It also attempts to identify the country- and industry-specific determinants of vertical and horizontal IIT. One of the main findings is that, with the exception of Mexico, the U.S. trade patterns with rest of Latin American countries are dominated by one-way trade. Another main finding is that the observed increase in intra-industry trade between the United States and Latin America is almost entirely due to two-way trade in vertical differentiation. The third important finding is that, among the country-specific determinants, the level of per capita income and trade intensity are found to affect the shares of all three types of IIT positively while difference in per capita income, difference in economic size, distance, difference in factor endowment, and trade imbalances are found to affect the share of all three types of ...
The International Trade Journal, 1995
This paper examines changes in intra-industry trade (IIT) in manufactured goods between the U.S. and Mexico over the first five years of the North American Free Trade Agreement. Most industries experienced large increases in IIT. An examination of various indexes of intra-industry specialization indicates few industries in either country are candidates for significant adjustment problems. These findings should lessen opposition to greater regional economic integration in the Western Hemisphere. Resumen Este artículo analiza cambios en patrones de comercio intra-industrial (CII) en bienes manufacturados entre México y Estados Unidos durante los primeros cinco años del Acuerdo de Libre Comercio. La mayoría de las industrias experimentaron incrementos notables en sus volumenes de CII. Un análisis de los distintos indices de especialización intra-industrial indica que pocas industrias en México y Estados Unidos se enfrentarán a riesgos marcados en términos de problemas intensos de ajuste. Estas inferencias deben servir para disminuir presiones en contra de mayor integración económica regional en el hemisferio occidental.
Technological Determinants of Market Shares of Mexican Manufacturing Exports
Asian Journal of Latinamerican Studies, 2011
The aim of this paper is to estimate the determinants of export market shares for Mexican manufacturing industries to United States, in order to do this; determinants related to technology are distinguished from those nonrelated to technology. Estimations are based on a theoretical model that allowed classifying industries in function of the competition process in each industry. Regarding technological aspects four categories were identified: industries with high technology, with high and low intra-industry trade, and low technology industries with high and low intra-industry. Distinction between these groups is represented by eight major elements, namely, process or product innovation, vertical or horizontal product differentiation, price or quality differences, domestic market structure, and labor costs.
Determinants of Intraindustry Trade Between the United States and Industrial Nations
International Economic Journal, 2003
This paper investigates determinants of intraindustry trade between the United States and twenty-two industrial nations. Included here are country-level characteristics suggested by modem models of monopolistic competition and trade and industry-level variables relating to imperfect competition, scale economies, and product differentiation. Country-level determinants of intraindustry trade include relative factor endowment differences, relative country size differences, distance, trade orientation, and the trade balance. Measures of factor intensity, scale economies, market structure, and product differentiation are included as country-level variables. Findings generally support predictions of modem trade theories. [Fl]
The Recent Evolution of Mexico's Manufacturing Exports
In this paper, we use the gravity model of trade to decompose Mexico's export growth into components associated with export-supply capacity, import-demand conditions, and other factors. Some have argued that Mexico's recent sluggish export performance is due to China's expansion in global markets. Others have cited Mexico's inability to make needed economic reforms, which have hurt the country's competitiveness in manufacturing. Our results suggest that negative import-demand shocks associated with both China and the U.S. recession have contributed to the slowdown in Mexico's export growth. Had U.S. GDP growth not decelerated after 2000, Mexico's annual manufacturing export growth would have been 1.4 percentage points higher. Had China's growth in export capabilities remained unchanged after 1995, Mexico's annual export growth rate would have been 1.5 percentage points higher in the late 1990s and 3.0 percentage points higher in the early 2000s. We also examine factors that contribute to growth in Mexico's export supply capacity.
Comparative Experience of Trade Relationships between Mexico and China
Journal on Innovation and Sustainability. RISUS ISSN 2179-3565
Mexico and China established diplomatic relations in 1972 and since the 1990s, Mexicoand China have both made progresses in their foreign trade. Expansion of their trade volumesand overseas markets, the overlapping parts of their exporting products and markets have beenbeing enlarged. This paper analyses the trade relationship between Mexico and China in thecontext of the economic openness enacted by both nations, also analyses the current traderelations between Mexico and China, presenting similarities and logical relation along with theresults of their commercial policies and specific business practices.
The Impact of the EU-Mexican Trade Agreement on Revealed Comparative Advantage
This chapter analyzes the changes in the revealed comparative advantage of two-digit industries before and after the EU-Mexico Free Trade Agreement went into effect in July, 2000. We find that there was an increase in the number of industries enjoying a comparative advantage on each side from 2000 to 2003-2006, followed by a decline, suggesting that the benefits of the Agreement to the signatories were mainly short-term. While there seems to be a shift in the comparative advantage of Mexican exports from primary industries to manufacturing, there is no discernible pattern in the changing comparative advantages of European exports to Mexico. NOTE: I am not at liberty to publish the full-text on ResearchGate at this time.
Journal of Sustainable Development, 2012
The authors analysed comparative advantage of Canada, Mexico and the United States in the context of the North American Free Trade Agreement (NAFTA). The authors found that there is empirical evidence as expected that the United States of America has a large number of products in which it has a comparative advantage in, followed by Canada. Mexico is the least competitive with fewer products compared to the United States of America and Canada. The authors have also concluded that having comparative advantage is not synonymous with trade performance in intra-regional trade as Mexico tends to benefit much more in spite of having a very few products in which it has comparative advantage as demonstrated by huge trade surpluses over Canada and the United States.
Patterns and determinants of intra-industry trade in Asia
Journal of Asian Economics, 2010
We analyse patterns of intra-NAFTA Intra-Industry Trade (IIT) in the USA, Canada and Mexico over the 1992-2002 period, by decomposing IIT into Horizontal IIT (HIIT) and Vertical IIT (VIIT). Additionally, we examine the determinants of both IIT types. Results indicate that HIIT and VIIT within NAFTA exhibit opposite trends. Specifically, HIIT is increasing, whilst VIIT exhibits a significant downward trend, indicating a restructuring in favour of IIT in horizontally differentiated products. However, VIIT still represents the dominant IIT type. Contrary to theoretical expectations, our findings for the determinants of each IIT type suggest that some crucial factors influence HIIT and VIIT in the same way. Overall, our findings imply that on the one hand, comparative advantage is loosing importance in driving intra-NAFTA trade and specialisation patterns, and that on the other hand, trade-induced adjustment costs have become less severe over time.