Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240695 
Year of Publication: 
2020
Series/Report no.: 
Working Papers No. 2020-06
Publisher: 
Banco de México, Ciudad de México
Abstract (Translated): 
Based on the World Input-Output Matrix 2016 estimated by Timmer et al. (2016), the Hypothetical Extraction Method is applied in a multi-country context to estimate Mexico's gross output and value added linked to the economic activity of the United States; and then the gross output and value added of the United States linked to Mexico's economic activity. Next, it is shown based on the Ghosh Regional Model how the value added of Mexico linked to the economic activity in the United States is allocated among its sectors and regions. The results capture the strong economic linkage between both economies at the aggregate level, as well as its sectoral concentration. The results also indicate that the Northern and Central regions of Mexico are those with the strongest link to the United States; followed by the Southern region, where the largest share of the oil industry is located.
Subjects: 
Hypothetical Extraction
Ghosh Input-Output Model
World Input-Output Matrix
Mexico
United States
Economic Integration
JEL: 
R11
R12
R15
Document Type: 
Working Paper
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