Concepts and Measurements of Economic Interdependence: The Case of the United States and Mexico

del Rosío Barajas-Escamilla María (), Kia Amir () and Sotomayor Maritza ()
Additional contact information
del Rosío Barajas-Escamilla María: Social Studies Department, El Colegio de la Frontera Norte, Tijuana, BC 22560, Mexico
Kia Amir: Finance and Economics Department, Utah Valley University, Orem, UT 84058–5999, USA
Sotomayor Maritza: Finance and Economics Department, Utah Valley University, Orem, UT 84058–5999, USA

Global Economy Journal, 2016, vol. 16, issue 1, 63-90

Abstract: We developed a theoretical model capable to analyze U.S. fiscal and monetary policy effects on Mexican exports in order to provide an alternative approach to the study of economic interdependence. The model was estimated for the sample period of 1980–2013. The existing literature evidences quantified interdependence through trade flows and ignores the role of the U.S. fiscal and monetary policies. This paper uses the concept of sensitivity, from the economic interdependence literature, to verify the long and short run relationships between the U.S. and Mexico in a context of trade integration. Our findings confirm Mexico’s sensitivity to unanticipated shocks in particular coming from the U.S. monetary policy, the exchange rate and the world oil price.

Keywords: economic interdependence; sensitivity; fiscal and monetary policies; Mexico; NAFTA (search for similar items in EconPapers)
JEL-codes: C32 E52 F14 F15 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/gej-2015-0034 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:glecon:v:16:y:2016:i:1:p:63-90:n:6

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/gej/html

DOI: 10.1515/gej-2015-0034

Access Statistics for this article

Global Economy Journal is currently edited by Jannett Highfill

More articles in Global Economy Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().