We analyze whether the pattern of Mexico's comparative advantages in manufacturing trade flows, vis-à-vis its closest competitors, are related with productivity differentials (Ricardian hypothesis) or with differences in factor endowments (Heckscher-Ohlin hypothesis). The results suggest that...

When a central bank commits credibly to a nonaccommodative monetary policy, observed inflation should be a stationary process. In countries where, for a variety of reasons, the determinants of inflation could lead it to follow a nonstationary process, the adoption of a credible disinflationary...

We estimate wage differentials across different segments of the Mexican urban labor market. We use a panel sample of individuals which allows us to control for workers' observable and non-observable characteristics, by focusing on wage changes reported by individuals who move from one sector to...

This note studies the causal relationship that may exist between the producer price index (PPI) and the consumer price index (CPI). In contrast with previous international studies, the results suggest that, in the case of Mexico, information on the PPI seems to be useful to improve forecasts of...

We estimate wage differentials across different sectors of the Mexican economy. The results suggest that the wage differential between the formal and informal sectors is significant and larger than the differential between industry and services. The findings suggest that significant differences...

We address the role that deep, structural factors may have as determinants of Mexico's economic growth. We argue that Mexico's poor growth performance appears to be associated not only with shorter-run events such as the lost decade of the eighties, but also with supply-side features of the...

The results in Chiquiar and Ramos-Francia (2005) suggested that the long-run relationship between the US's and Mexico's manufacturing sectors was weakened after China joined the World Trade Organization (WTO). When that paper was made, however, this shock was too recent and, therefore, the...