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

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Published: Nov 12, 2016
DOI: https://doi.org/10.17428/rfn.v28i55.72
Keywords:
International competitiveness manufacturing industry cointegration analysis Mexico USA

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Víctor Manuel Cuevas Ahumada
Universidad Autónoma Metropolitana

Abstract

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.

Article Details

How to Cite
Cuevas Ahumada, V. M. (2016). Cost and relative price competitiveness of Mexican manufacturing industry in the US market. Frontera Norte, 28(55), 53–78. https://doi.org/10.17428/rfn.v28i55.72
Issue
Vol. 28 No. 55 (2016): enero-junio, 2016
Section
Papers

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Author Biography

Víctor Manuel Cuevas Ahumada, Universidad Autónoma Metropolitana

Profesor-Investigador del Departamento de Economía de la Universidad Autónoma Metropolitana-Unidad Azcapotzalco, Investigador Nacional Nivel II, y Miembro de la Academia Mexicana de Ciencias.

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