This paper studies the reasons behind the export performance of different Mexican states from 1994 to 2002. Mexican exports are divided into two components: (1) foreign market potential; and (2) supply capacity. Results suggest that states that experience an increase in supply capacity are, in...

This study explores the prevalence and nature of the regional divide for the Mexican manufacturing production across sub-national regions. We utilize a unique panel of municipality-level data from the manufacturing sector. An important contribution is the use of different panel methods to...