Localization of manufacturing industries and specialization in Mexican states: 1993–2013

Gómez-Zaldívar, Manuel and Mosqueda, Marco T. and Duran, Jazmin A. (2017): Localization of manufacturing industries and specialization in Mexican states: 1993–2013.

Abstract

We document how the localization of production in Mexico’s range of manufacturing subsectors and the specialization of its states have evolved as a result of the process of trade opening. We use the global estimate methodology to calculate the extent to which all industries are localized or all regions specialized. The results show that: i) since 1993, there has been an increase in global localization and specialization in manufacturing production; (ii) transportation equipment, chemicals, and food products account for the greatest share of the overall increase in localization during this period; (iii) those states closest to the US contributed most to the overall increase in specialization.

• Item Type: MPRA Paper
• Language: English
• Keywords: Industrial Localization; Regional Specialization; Economic Integration
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity

References

Behrens, K., C. Gaigné, G. Ottaviano y J.F. Thisse (2007). Countries, Regions and Trade: on the Welfare Impacts of Economic Integration. European Economic Review, 51, 1277-1301.

Chiquiar, D. (2005). Why Mexico’s Regional Income Convergence Broke Down. Journal of Development Economics, 77, 257-275.

Chiquiar, D., E. Covarrubias y A. Salcedo (2016). Labor Market Concequences of Trade Openness and Competition in Foreign Markets. Por aparecer en la serie de Documentos de Investigación del Banco de México.

De Nardis, S., A. Goglio y M. Malgarini (1996). Regional Specialization and Shocks in Europe: Some Evidence from Regional Data. Weltwirtschaftliches Archiv, 132 (2), 197-214.

Garduño, R. (2014). La Apertura Comercial y su Efecto en la Distribución Regional de México. El Trimestre Económico, Vol. LXXXI (2), Num. 322, 413-439.

Hanson, G. (1998). Regional Adjustment to Trade Liberalization. Regional Science and Urban Economics, Vol. 28 (2), 419-444.

INEGI. Censos Económicos 1994, 1999, 2004, 2009 y 2014. Portal: www.inegi.org.mx.

Kalemli-Ozcan, S., B.E. Sorensen y O. Yosha (2001). Economic Integration, Industrial Specialization, and the Assymetry of Macroeconomic Fluctuations. Journal of International Economics, 55, 107-137.

Krugman, P. (1991a). Geography and Trade. MIT Press, Cambridge, MA.

Krugman, P. (1991b). Increasing Returns and Economic Geography. Journal of Political Economy, 99, 483-499. Krugman, P. y R. Livas Elizondo (1996). Trade Policy and Third World Metropolis. Journal of Development Economies, 49, 137-150.

Krugman, P. y Venables A.J. (1996). Integration, Specialization and Adjustment. European Economic Review, 40, 959-967.

Mulligan, G.F. y C. Schmidt (2005). A Note on Localization and Specialization. Growth and Change, Vol. 36 (4), 565-576.