The geographic concentration in Mexican manufacturing industries, an account of patterns, dynamics and explanations: 1988-2003

This paper presents an examination of regional concentration levelsof individual industries in the Mexican manufacturing sector and its determinants.The shifts after NAFTA are particularly weighed up. We employ state level dataof manufacturing output and employment (1988-2003). The data reveals that...

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Bibliographic Details
Published in:Investigaciones regionales 2010 (18), p.37-60
Main Author: Alejandra Berenice Trejo Nieto
Format: Article
Language:English
Subjects:
Estudios Territoriales
Geographic concentration
localisation
regional economics
trade
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Summary:This paper presents an examination of regional concentration levelsof individual industries in the Mexican manufacturing sector and its determinants.The shifts after NAFTA are particularly weighed up. We employ state level dataof manufacturing output and employment (1988-2003). The data reveals that industrieshave become, on average, more dispersed in terms of both production andemployment. However among the most concentrated industries are those whichare highly linked to international markets. The concentrated, concentrating andlargest industries tend to locate in traditional industrial regions, in the north butincreasingly more in the Bajio. The regression analysis for the determinants ofconcentration shows consistency with a number of predictions such as the significanceof economies of scale, wages, exports and transport costs, which indicatesthat international trade plays a role in concentration profiles of industries.
ISSN:1695-7253
2340-2717