Mexican intra-industry trade with some representative Latin American economies (2000-2016)

Abstract

The Mexican economy is one of the most successful exporting economies around the world. However, despite the number of agreements that exist with the Latin American countries, the trade performance with Central and South America has traditionally been poor. This paper explores, in an empirical way, the behavior of Mexican’s intra-industrial trade (CII) with the most representative economies of Central and South America through the Grubel-Lloyd index (IGL). The Grubel-Lloyd Index (IGL) is an imperfect measure of integration but has been valued as a good indicator of the integration of the manufacturing industry into the developed economies. The estimations carried out with the International Standard Classification of International Trade (SITC) for this group of countries show that there is evidence to assume that Mexico's intra-industry trade with the countries of the region is influenced by the level of economic development and Industrial development due to the regional approach.