The behavior of Mexico’s manufacturing industry in the face of the US economic recession
Abstract
This paper analyzes the effect of the US manufacturing sector on the manufacturing industry of Mexico at the subsector and regional level. The methodology of analysis consists of the application of the Hodrick-Prescott filter to obtain the cyclical component for the manufacturing industries and using stationary and cointegration tests to evaluate the equilibrium of the series in the long run. The results showed a pro-cyclical and volatile relationship of the Mexican manufacturing sector with that of the USA.
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