The Dragon Menace: Is China Displacing Mexico's trade with the United States?

The most common statistic used in order to prove China's negative impact on Mexico's trade with the US is the share of US imports precedent from Mexico exporters. This approach suggests that China's expansion in the US market negatively correlates with the growth of the Mexican export...

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Detalles Bibliográficos
Autores principales: Edgardo Arturo Ayala, Mario Villarreal
Formato: Artículo científico
Publicado: Universidad Autónoma Metropolitana Unidad Azcapotzalco 2009
Materias:
Acceso en línea:http://www.redalyc.org/articulo.oa?id=41311453015
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-022&d=41311453015oai
Aporte de:
id I16-R122-41311453015oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
China
Mexico
export displacement
trade competition
spellingShingle Economía y Finanzas
China
Mexico
export displacement
trade competition
Edgardo Arturo Ayala
Mario Villarreal
The Dragon Menace: Is China Displacing Mexico's trade with the United States?
topic_facet Economía y Finanzas
China
Mexico
export displacement
trade competition
description The most common statistic used in order to prove China's negative impact on Mexico's trade with the US is the share of US imports precedent from Mexico exporters. This approach suggests that China's expansion in the US market negatively correlates with the growth of the Mexican exports. However, and contrary to conventional wisdom and the ad-hoc shift share approach, our analysis suggest that: 1) even when China displacement effect is not minor, the China expansion in the US market explains at the most one third of the decline in the rate of growth of the Mexican exports to that nation; 2) contradicting the shift share approach that target almost half of the Mexican sectors under the China threat, we localized that almost all the displacement (95 percent) occurred in two sectors, textiles and machinery; and 3) two thirds of the employment losses in the textile industry are explained by long run factors, such as technology, and just one third is due to China's growth in the US market. Moreover, we suggest that the potential for economic gains for Mexico, due to China's economic growth, can offset short-term negative shocks.
format Artículo científico
Artículo científico
author Edgardo Arturo Ayala
Mario Villarreal
author_facet Edgardo Arturo Ayala
Mario Villarreal
author_sort Edgardo Arturo Ayala
title The Dragon Menace: Is China Displacing Mexico's trade with the United States?
title_short The Dragon Menace: Is China Displacing Mexico's trade with the United States?
title_full The Dragon Menace: Is China Displacing Mexico's trade with the United States?
title_fullStr The Dragon Menace: Is China Displacing Mexico's trade with the United States?
title_full_unstemmed The Dragon Menace: Is China Displacing Mexico's trade with the United States?
title_sort dragon menace: is china displacing mexico's trade with the united states?
publisher Universidad Autónoma Metropolitana Unidad Azcapotzalco
publishDate 2009
url http://www.redalyc.org/articulo.oa?id=41311453015
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-022&d=41311453015oai
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