Abstract

PEREZ-SANTILLAN, Lesbia  and  ARRIAGA NAVARRETE, Rosalinda. Productive and commercial integration of Mexico in global value chains. El trimestre econ [online]. 2024, vol.91, n.363, pp.663-703.  Epub Jan 20, 2025. ISSN 2448-718X.  https://doi.org/10.20430/ete.v91i363.2174.

This paper analyzes the characteristics of Mexico’s productive and commercial integration from 1995 to 2018. It offers a framework to understand how the sectors of the Mexican economy are integrated into global value chains (GVC). The methodology developed by Wang, Wei, Yu, and Zhu (2017a and 2017b) is applied to the interregional input-output matrices of the Organisation for Economic Co-operation and Development (OECD). With this, two questions are answered: 1) What percentage of production factors used in Mexican sectors have been involved in activities of segmented production or GVC between countries? And 2) what percentage of final products produced by sectors in Mexico come from GVC activities? The results indicate that the sectors of the Mexican economy have higher participation indexes in backward linkages, which shows a higher share of imported intermediate inputs, compared to their respective participation indexes in forward linkages. The latter represents inputs from the country in exports and production of goods from third countries. Additionally, the results indicate that any policy design aimed at promoting specific activities should take into account the increasing integration of countries and their sectors GVC on a global scale, regardless of their level of development. This fact may limit the options for further integrating activities related to GVC with domestic activities.

Keywords : Input-output analysis; manufacturing exports; empirical studies of trade.

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