Cost and relative price competitiveness of Mexican manufacturing industry in the US market

This research evaluates the long-term determinants of Mexican manufacturing competitiveness in the US market. To perform this task, an International Competitiveness (IC) index is constructed and then a model is specified and estimated by using three different econometric methods. The empirical evide...

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Detalhes bibliográficos
Autor: Cuevas Ahumada, Víctor Manuel
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2016
País:México
Recursos:EL COLEGIO DE LA FRONTERA NORTE
Repositorio:Frontera Norte
Idioma:inglés
OAI Identifier:oai:revistas.colef.mx:article/72
Acesso em linha:https://fronteranorte.colef.mx/index.php/fronteranorte/article/view/72
Access Level:acceso abierto
Palavra-chave:International competitiveness
manufacturing industry
cointegration analysis
Mexico
USA
competitividad internacional
industria manufacturera
análisis de cointegración
México
Estados Unidos
Descrição
Resumo:This research evaluates the long-term determinants of Mexican manufacturing competitiveness in the US market. To perform this task, an International Competitiveness (IC) index is constructed and then a model is specified and estimated by using three different econometric methods. The empirical evidence across econometric techniques is consistent in indicating that IC is responsive to the peso-dollar real exchange rate, the yuan-dollar real exchange rate, labor productivity, wages and the cost of credit. An important contribution of this paper is to show that manufacturing IC is influenced by the yuan-dollar real exchange rate and the real cost of credit.