IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0849.html
   My bibliography  Save this article

Trade Integration and Intra-national Business Cycle Synchronization: Evidence from Mexico’s States from 1980 to 2019

Author

Listed:
  • Gómez-Zaldívar, Manuel

    (Universidad de Guanajuato, Mexico)

  • Garcia-Barragan, Fernando

    (1.Universidad de Guanajuato, Mexico 2.Stellenbosch University, South Africa)

Abstract

This study documents the adjustment in the business cycles of Mexico’s states that resulted from trade liberalization. It also analyzes the relevance of the various elements that previous studies have proposed as the determining factors of the synchronization of these cycles. Our results reveal that these determinants are relevant throughout the sample period (1980-2019), but their relative importance changes over time as does their synchronization. This may be explained as follows: trade liberalization caused a regional and sectoral reallocation of resources, which in turn led to some states becoming increasingly interlinked based on their economic structures, whereas the remaining states became less synchronized with the former states. This case should be of interest to other developing countries that are dependent on the world’s capital and trade flows and whose regions may respond heterogeneously if they have diverse economic structures as those of Mexico.

Suggested Citation

  • Gómez-Zaldívar, Manuel & Garcia-Barragan, Fernando, 2022. "Trade Integration and Intra-national Business Cycle Synchronization: Evidence from Mexico’s States from 1980 to 2019," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 216-234.
    • Handle: RePEc:ris:integr:0849
    DOI: 10.11130/jei.2022.37.2.216
    as

    Download full text from publisher

    File URL: https://doi.org/10.11130/jei.2022.37.2.216
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.11130/jei.2022.37.2.216?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Salvador Barrios & Juan José de Lucio, 2003. "Economic Integration and Regional Business Cycles: Evidence from the Iberian Regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 497-515, September.
    2. Chiquiar, Daniel, 2005. "Why Mexico's regional income convergence broke down," Journal of Development Economics, Elsevier, vol. 77(1), pages 257-275, June.
    3. Michael Artis & Toshihiro Okubo, 2011. "The intranational business cycle in Japan," Oxford Economic Papers, Oxford University Press, vol. 63(1), pages 111-133, January.
    4. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    5. Imbs, Jean, 2000. "Sectors and the OECD Business Cycle," CEPR Discussion Papers 2473, C.E.P.R. Discussion Papers.
    6. Lawrence J. Christiano & Terry J. Fitzgerald, 2003. "The Band Pass Filter," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 435-465, May.
    7. Michael Artis & Toshihiro Okubo, 2010. "The UK intranational business cycle," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 29(1-2), pages 71-93.
    8. Kim, Sukkoo, 1999. "Regions, resources, and economic geography: Sources of U.S. regional comparative advantage, 1880-1987," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 1-32, January.
    9. Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 573-593, December.
    10. Michel Beine & Serge Coulombe, 2005. "One Market, One Money: Evidence from Canada–United States Economic Integration," The World Economy, Wiley Blackwell, vol. 28(7), pages 985-1003, July.
    11. Sukkoo Kim, 1995. "Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U. S. Regional Manufacturing Structure, 1860–1987," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 881-908.
    12. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
    13. Aguiar-Conraria Luís & Brinca Pedro & Guðjónsson Haukur Viðar & Soares Maria Joana, 2017. "Business cycle synchronization across U.S. states," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(1), pages 1-15, January.
    14. Correia, L. & Gouveia, S., 2013. "Business cycle synchronisation at the regional level: evidence for the Portuguese regions," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(1), pages 91-104.
    15. Pablo Mejía‐Reyes & Miguel Ángel Díaz‐Carreño & Patricio Aroca, 2019. "Mexican states' business cycles co‐movement over the period 2000–2014. A panel data model estimation," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1532-1567, December.
    16. Felipe J. Fonseca & Irving Llamosas‐Rosas & Erick Rangel‐González, 2019. "Economic liberalization and external shocks. The hypothesis of convergence revisited for the Mexican states, 1994–2015," Growth and Change, Wiley Blackwell, vol. 50(1), pages 285-300, March.
    17. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
    18. Michael Storper & Yun-chung Chen, 2002. "Trade and the location of industries in the OECD and European Union," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 73-107, January.
    19. Jürgen Bierbaumer-Polly & Peter Huber & Petr Rozmahel, 2016. "Regional Business-Cycle Synchronization, Sector Specialization and EU Accession," Journal of Common Market Studies, Wiley Blackwell, vol. 54(3), pages 544-568, May.
    20. Gordon F. Mulligan & Charles Schmidt, 2005. "A Note on Localization and Specialization," Growth and Change, Wiley Blackwell, vol. 36(4), pages 565-576, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909, Elsevier.
    2. Cutrini, Eleonora, 2009. "Using entropy measures to disentangle regional from national localization patterns," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 243-250, March.
    3. Gießler Stefan & Heinisch Katja & Holtemöller Oliver, 2021. "(Since When) Are East and West German Business Cycles Synchronised?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 241(1), pages 1-28, February.
    4. Mejía-Reyes, Pablo & Rendón-Rojas, Liliana & Vergara-González, Reyna & Aroca, Patricio, 2018. "International synchronization of the Mexican states business cycles: Explaining factors," The North American Journal of Economics and Finance, Elsevier, vol. 44(C), pages 278-288.
    5. HAEDO, Christian & MOUCHART, Michel, 2012. "A stochastic independence approach for different measures of concentration and specialization," LIDAM Discussion Papers CORE 2012025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Olga Alonso-Villar & Coral Del R�o, 2008. "Geographical Concentration of Unemployment: A Male-Female Comparison in Spain," Regional Studies, Taylor & Francis Journals, vol. 42(3), pages 401-412, April.
    7. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    8. repec:wsr:wpaper:y:2010:i:062 is not listed on IDEAS
    9. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
    10. Astrid KRENZ & Gerhard RÜBEL, 2009. "Explaining Industrial Localization and Countries´ Specialization in the European Union: An Empirical Investigation," EcoMod2009 21500056, EcoMod.
    11. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 861-873.
    12. Natalia Vechiu & Farid Makhlouf, 2014. "Economic integration and specialization in production in the EU27: does FDI influence countries’ specialization?," Empirical Economics, Springer, vol. 46(2), pages 543-572, March.
    13. Dan Zheng, 2011. "The Dynamics of Economic Policy and Regional Specialization: Evidence from China's High-tech Industry," ERSA conference papers ersa11p1086, European Regional Science Association.
    14. Krieger-Boden, Christiane, 2002. "European integration and the case for compensatory regional policy," ERSA conference papers ersa02p240, European Regional Science Association.
    15. repec:got:cegedp:106 is not listed on IDEAS
    16. Lu, Zheng & Deng, Xiang, 2012. "Comparative Advantage, Scale Economy and Regional Specialization：An Empirical Analysis Based on China’s Industries," MPRA Paper 39312, University Library of Munich, Germany.
    17. Valter Di Giacinto & Marcello Pagnini, 2008. "Agglomeration within and between regions: Two econometric based indicators," Temi di discussione (Economic working papers) 674, Bank of Italy, Economic Research and International Relations Area.
    18. Eleonora CUTRINI, 2006. "The Balassa Index Meets the Dissimilarity Theil Index: a Decomposition Methodology for Location Studies," Working Papers 274, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    19. Bode, Eckhardt & Krieger-Boden, Christiane & Siedenburg, Florian & Soltwedel, Rüdiger, 2005. "European integration, regional structural change and cohesion in Spain," Open Access Publications from Kiel Institute for the World Economy 3766, Kiel Institute for the World Economy (IfW Kiel).
    20. Krieger-Boden, Christiane, 2000. "Globalization, integration and regional specialization," Kiel Working Papers 1009, Kiel Institute for the World Economy (IfW Kiel).
    21. Krenz, Astrid & Rübel, Gerhard, 2010. "Industrial localization and countries' specialization in the European Union: An empirical investigation," University of Göttingen Working Papers in Economics 106, University of Goettingen, Department of Economics.
    22. Bao, Chengchao & Chen, Zhao & Wu, Jianfeng, 2013. "Chinese manufacturing on the move: Factor supply or market access?," China Economic Review, Elsevier, vol. 26(C), pages 170-181.

    More about this item

    Keywords

    business cycle; synchronization; trade integration; Mexican states;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.