Intra-Industry Trade with Mexico May Aid U.S. Global Competitiveness

Cañas, Jesus; Heffner, Aldo; Herrera Hernández, Jorge

Journal Article

Intra-Industry Trade with Mexico May Aid U.S. Global Competitiveness

Abstract: Since the enactment of NAFTA, U.S.?Mexico trade and manufacturing processes have become increasingly integrated through cross-border production linkages. A new Banco de Mxico economic model finds that U.S. imports from Mexico can be explained by taking into account the level of U.S. exports?suggesting that trade with Mexico may have contributed to enhanced U.S. global competitiveness.