Determinants of horizontal and vertical intra-industrial trade in the manufacturing industries of Mexico

  • Ana Lilia Valderrama Santibáñez Instituto Politécnico Nacional
  • Omar Neme Castillo Instituto Politécnico Nacional
Keywords: intra-industry trade, specific determinants, manufacturing industries
JEL Classification: F14, F15, F19, L1, L6

Abstract

This paper analyses the determinants of intra-industry trade (CININ), vertical (CININV) and horizontal (CININH), inside the commercial relationship between Mexico and United States, in the period 1985-2006, for 22 industries, employing Adjusted Grubel-Lloyd and Kojima indices. Estimations followed a fixed effects panel data methodology. Results indicate product differentiation, non-competitive market structures, development level, market size, market size difference and economic integration are determinants of CININ and CININV; while scale economies, non-competitive market structures, development level, per capita income difference between Mexico and US as well as difference of market size, and economic integration are determinants of CININH.

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Published
01-01-2011
How to Cite
Valderrama SantibáñezA., & Neme CastilloO. (2011). Determinants of horizontal and vertical intra-industrial trade in the manufacturing industries of Mexico. Estudios Económicos, 26(1), 35-68. https://doi.org/10.24201/ee.v26i1.105
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