Determinants of Mexico’s Comparative Advantages and of the Performance of its Manufacturing Exports During 1996-2005

Banco de México Working Paper 2008-1

50 Pages Posted: 14 Jul 2010

See all articles by Daniel Chiquiar

Daniel Chiquiar

University of California at San Diego

Manuel Ramos-Francia

Banco de México

Nicolas Amoroso

affiliation not provided to SSRN

Núria Quella-Isla

Columbia University - Barnard College

Date Written: February 2008

Abstract

We analyze if the pattern of comparative advantages and the recent behavior of Mexican manufacturing exports, vis-`a-vis its closest competitors, are related with productivity differentials or with differences in factor endowments. The relative abundance of relatively unskilled labor in Mexico locates this country in markets where other large countries with similar factor endowments, such as China, have entered rapidly. In comparison with China and other similar competitors, the most important determinant of Mexico’s comparative advantages and export performance seems to be productivity differentials. When Mexico is compared against other relevant competitors that have been able to rise faster in the value chain, Mexican export performance also seems to reflect its relatively small endowment of human capital.

Keywords: Revealed Comparative Advantage, NAFTA, Export Performance, Productivity

JEL Classification: F14, F15, O14

Suggested Citation

Chiquiar, Daniel and Ramos-Francia, Manuel and Amoroso, Nicolas and Quella-Isla, Nuria, Determinants of Mexico’s Comparative Advantages and of the Performance of its Manufacturing Exports During 1996-2005 (February 2008). Banco de México Working Paper 2008-1, Available at SSRN: https://ssrn.com/abstract=1638889 or http://dx.doi.org/10.2139/ssrn.1638889

Daniel Chiquiar (Contact Author)

University of California at San Diego ( email )

9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0502
United States

Manuel Ramos-Francia

Banco de México

Nicolas Amoroso

affiliation not provided to SSRN ( email )

Nuria Quella-Isla

Columbia University - Barnard College ( email )

3009 Broadway
New York, NY 10027
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
181
Abstract Views
1,626
Rank
300,534
PlumX Metrics