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Mexican Trade with the US - A Study of the Impact of Chinese Competition

Tannergård, Sophia LU (2012) NEKH01 20122
Department of Economics
Abstract
The world market changed quite dramatically when China joined the WTO in 2001 and fully entered the world market. It had implications for both importing and exporting countries, as China’s entrance on the world market increased the supply of cheap manufactured goods. This is thought to have caused US consumers to replace Mexican products with Chinese, and to have slowed down or decreased Mexican exports to the US.
The aim of this essay is to investigate whether US imports from Mexico have changed due to increased Chinese competition. This is done by reviewing previous research and supplementing it with correlation and regression analysis built on OECD data. The results from these analyses show that the decrease of US imports from Mexico... (More)
The world market changed quite dramatically when China joined the WTO in 2001 and fully entered the world market. It had implications for both importing and exporting countries, as China’s entrance on the world market increased the supply of cheap manufactured goods. This is thought to have caused US consumers to replace Mexican products with Chinese, and to have slowed down or decreased Mexican exports to the US.
The aim of this essay is to investigate whether US imports from Mexico have changed due to increased Chinese competition. This is done by reviewing previous research and supplementing it with correlation and regression analysis built on OECD data. The results from these analyses show that the decrease of US imports from Mexico does not depend as much on Chinese competition as previously thought. Some Mexican industries, such as the textile sector, does seem to have been negatively affected by Chinas entrance at the market, but the general conclusion is that the slow, or negative, Mexican growth cannot be explained by Chinese competition. (Less)
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author
Tannergård, Sophia LU
supervisor
organization
course
NEKH01 20122
year
type
M2 - Bachelor Degree
subject
keywords
USA, China, Competition, Imports, Mexico
language
English
id
3450634
date added to LUP
2013-02-13 13:59:41
date last changed
2013-02-13 13:59:41
@misc{3450634,
  abstract     = {The world market changed quite dramatically when China joined the WTO in 2001 and fully entered the world market. It had implications for both importing and exporting countries, as China’s entrance on the world market increased the supply of cheap manufactured goods. This is thought to have caused US consumers to replace Mexican products with Chinese, and to have slowed down or decreased Mexican exports to the US. 
 The aim of this essay is to investigate whether US imports from Mexico have changed due to increased Chinese competition. This is done by reviewing previous research and supplementing it with correlation and regression analysis built on OECD data. The results from these analyses show that the decrease of US imports from Mexico does not depend as much on Chinese competition as previously thought. Some Mexican industries, such as the textile sector, does seem to have been negatively affected by Chinas entrance at the market, but the general conclusion is that the slow, or negative, Mexican growth cannot be explained by Chinese competition.},
  author       = {Tannergård, Sophia},
  keyword      = {USA,China,Competition,Imports,Mexico},
  language     = {eng},
  note         = {Student Paper},
  title        = {Mexican Trade with the US - A Study of the Impact of Chinese Competition},
  year         = {2012},
}