The Impact of the US Automobile Crisis on Mexico’s Car and Truck Subsector

Jorge Eduardo Mendoza Cota ()
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Jorge Eduardo Mendoza Cota: Investigador, Departamento de Estudios Económicos, El Colegio de la Frontera Norte. Tijuana, B.C., Mexico.

Economía Mexicana NUEVA ÉPOCA, 2011, vol. XX, issue 2, 281-309

Abstract: This paper analyzes the Mexican automobile and truck industries, and estimates the long run functional relationship between these industries and the automobile industry in the USA. The methodology consists of a cointegration analysis of the two series in the long run and the estimation of an autoregressive vector to evaluate the response of the Mexican automobile industry to shocks coming from the US automobile industry. The results show a long-run positive functional relationship between the US car industry and the Mexican car and truck industries, and also a short-term positive shock with four periods.

Keywords: car industry; economic integration; business cycle; cointegration analysis; time series. (search for similar items in EconPapers)
JEL-codes: C32 F14 L62 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:emc:ecomex:v:20:y:2011:i:2:p:281-309

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