Abstract

JAIME CAMACHO, Daniel David  and  CUEVAS AHUMADA, Vìctor Manuel. Intra-industry trade and the A and B Brülhart’s index for the steel and aluminum in Mexico-United States trade. Anál. econ. [online]. 2020, vol.35, n.89, pp.173-192.  Epub Nov 13, 2020. ISSN 2448-6655.

This research analyzes the dynamics of the Mexico-US trade involving the steel and aluminum industries’ main tariff headings during the years of the North American Free Trade Agreement. We make use of the intra-industry trade (IIT) approach, which is based on the Grubel-Lloyd (GL) index and the A and B indices developed by Brülhart. The main contribution lies in the quantification of the ITT of the steel and aluminum industries not only from the static perspective by means of the GL index, but also from the dynamic perspective by way of Brülhart’s A and B indices. Based on this empirical evidence and on the smooth adjustment hypothesis, we evaluate the potential adjustment costs resulting from a new round of tariffs imposed by US on the steel and aluminum imported from Mexico.

Keywords : intra-industry trade; marginal intra-industry trade; Mexico; USA; steel and aluminum.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )