The effect of China exportations to the United States of America in the job demand of the manufacturing sector of Mexico 2004-2012

Abstract

Recently the manufacturing sector of Mexico has experienced a reduced rate of growth. This study estimates the impact of the industrial activity of the U.S. and China on the demand for labor in the manufacturing sector of the northern border states of Mexico. With data on industrial activity, Chinese exports, wages and the peso-dollar exchange rate, a time series co-integration model is developed. The results show that exports from China to the Usa and manufacturing wages have affected labor demand negatively, while factors such as, the U.S. industrial production and the exchange rate tend to encourage manufacturing activity.

Keywords

• industrialización
• manufactura
• exportaciones de China
• Industrialization
• manufacturing
• exports of China