Analyzing the Export Flow from Texas to Mexico
MetadataShow full item record
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.