SciELO - Scientific Electronic Library Online

 
vol.65 issue4Determinants of audit fees for Portugal and Spain author indexsubject indexsearch form
Home Pagealphabetic serial listing  

Services on Demand

Journal

Article

Indicators

Related links

  • Have no similar articlesSimilars in SciELO

Share


Contaduría y administración

Print version ISSN 0186-1042

Abstract

CUEVAS AHUMADA, Víctor M.  and  CALDERON VILLARREAL, Cuauhtémoc. Mexico and China in the US manufacturing market: An empirical analysis. Contad. Adm [online]. 2020, vol.65, n.4, 00001.  Epub Sep 13, 2021. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2020.2024.

This paper conducts a disaggregated comparative analysis of China’s and Mexico’s export dynamism in the US manufacturing market over the period 1994-2017 and, against this backdrop, it estimates a dynamic panel data model through two econometric techniques to show the impact of key variables on Mexico’s export performance across manufacturing subsectors of different technology categories. Export performance is measured in terms of import market shares in the US and numerous econometric issues are addressed to produce reliable evidence. In addition to capturing some heterogeneity among different manufacturing subsectors, this study shows that: (i) a depreciation of the real exchange rate calculated for each subsector worsens (rather than improves) Mexico’s export performance, which is likely due to the high import content of Mexican manufacturing exports; (ii) a fall in domestic unit labor costs has a positive impact on Mexico’s export performance, which highlights the importance of raising labor productivity faster than wages; and (iii) a reduction in US unit labor costs deteriorates Mexico’s export performance.

Keywords : C33; F14; L60; Manufacturing exports; Panel data models; Mexico; China.

        · abstract in Spanish     · text in English