From 1997 to 2008, Texas shipped 40 percent of its manufacturing exports to Mexico. This puts Texas–Mexico among the largest state–country trading relationships. But this share has been declining recently. A gravity equation cannot account for either of these facts, even though Texas and Mexico share a border. This positive contiguity effect is not unique in state export data. I study the features of the Texas–Mexico relationship to try to account for the size of the export flow and the recent decline in share. Data limitations prevent a full accounting, but the most likely feature is the changing source of maquiladora inputs from the United States to Asia.
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Title
Analyzing the Export Flow from Texas to Mexico
Creators
Andrew Cassey (Author)
Publication Details
Staff Papers: Federal Reserve Bank of Dallas , Vol.11
Academic Unit
Economic Sciences, School of
Identifiers
99900501006001842
Copyright
In copyright ; http://rightsstatements.org/vocab/InC/1.0/ ; http://purl.org/eprint/accessRights/OpenAccess