Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico

Evidence about the effect of exports on welfare at the local level is scarce. Using a unique dataset of international trade and poverty maps for almost 2,000 Mexican municipalities between 2004 and 2014, the study presented in this paper provides new evidence on the impact of a significant rise in e...

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Autores principales: Rodríguez Castelán, Carlos, Vazquez, Emmanuel José
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2020
Materias:
Ciencias Económicas
International trade
Exports
Poverty
Local impacts
Migration
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/108295
https://www.cedlas.econo.unlp.edu.ar/wp/no-269/
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-108295
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
International trade
Exports
Poverty
Local impacts
Migration
spellingShingle Ciencias Económicas
International trade
Exports
Poverty
Local impacts
Migration
Rodríguez Castelán, Carlos
Vazquez, Emmanuel José
Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico
topic_facet Ciencias Económicas
International trade
Exports
Poverty
Local impacts
Migration
description Evidence about the effect of exports on welfare at the local level is scarce. Using a unique dataset of international trade and poverty maps for almost 2,000 Mexican municipalities between 2004 and 2014, the study presented in this paper provides new evidence on the impact of a significant rise in exports on poverty and inequality at the local level. The analysis implements an instrumental variable approach that combines the initial structure of exports across municipalities with global trends in exports from developing to developed countries by sector. The results show that a 10 percent increase in the ratio of exports to workers reduces income inequality measured by the Gini coefficient by 0.17 points (using a 0 to 100 scale), but no significant effects on poverty reduction or average household incomes are identified. The lack of impacts on average incomes is driven by a rise in the supply of labor at the local level because municipalities with higher export growth experienced an increase in labor force participation and attracted more net migration, particularly of unskilled workers. Therefore, while total labor incomes grew in response to an increase in exports, average labor incomes per worker did not change. Declining remittances also blunted the effect of growing exports on household incomes.
format Articulo
Documento de trabajo
author Rodríguez Castelán, Carlos
Vazquez, Emmanuel José
author_facet Rodríguez Castelán, Carlos
Vazquez, Emmanuel José
author_sort Rodríguez Castelán, Carlos
title Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico
title_short Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico
title_full Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico
title_fullStr Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico
title_full_unstemmed Tracing the Local Impacts of Exports on Poverty and Inequality: The Case of Mexico
title_sort tracing the local impacts of exports on poverty and inequality: the case of mexico
publishDate 2020
url http://sedici.unlp.edu.ar/handle/10915/108295
https://www.cedlas.econo.unlp.edu.ar/wp/no-269/
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