Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83753
Authors: 
Chiquiar, Daniel
Ramos-Francia, Manuel
Year of Publication: 
2008
Series/Report no.: 
Working Papers, Banco de México 2008-08
Abstract: 
The results in Chiquiar and Ramos-Francia (2005) suggested that the long-run relationship between the US's and Mexico's manufacturing sectors was weakened after China joined the World Trade Organization (WTO). When that paper was made, however, this shock was too recent and, therefore, the analysis was based only on end-of-sample structural break tests. In this note we use updated information to revisit this issue. The results suggest that, by shifting resources towards those sectors where it remained competitive, Mexico's response allowed the effect of China's entry to the WTO on its long-term relationship with the U.S. manufacturing sector to be only temporary.
Subjects: 
Business Cycle Synchronization
Trade Integration
NAFTA
JEL: 
E32
F15
F32
Document Type: 
Working Paper
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