Analysis of the content of internal and external value added in Mexico’s manufacturing exports by sectors and countries of origin and destination, 1995-2011

Abstract

Since there is a double accounting problem in international trade and since not all the countries that have experienced high exports growth rates have experienced high GDP growth rates, in this paper we present an estimation of the domestic and foreign value added content in Mexican manufacturing exports as an explanation of this problem. Using input-output analysis and data from the World Input Output Database, we have found that from 1995 to 2011: a) there is a significant change in the foreign value added content in Mexican manufacturing exports by country of origin; b) there is a drop in the domestic value added content in Mexican manufacturing exports, and c) there is a slight rise in the Mexican value added content in the final goods exports of Canada and the United States.