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Global Economy Journal

The Official Publication of the International Trade and Finance Association

Ed. by Pelzman, Joseph


CiteScore 2018: 0.33

SCImago Journal Rank (SJR) 2018: 0.157
Source Normalized Impact per Paper (SNIP) 2018: 0.402

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Volume 16, Issue 1

Issues

Concepts and Measurements of Economic Interdependence: The Case of the United States and Mexico

María del Rosío Barajas-Escamilla / Amir Kia / Maritza Sotomayor
Published Online: 2016-03-08 | DOI: https://doi.org/10.1515/gej-2015-0034

Abstract

We developed a theoretical model capable to analyze U.S. fiscal and monetary policy effects on Mexican exports in order to provide an alternative approach to the study of economic interdependence. The model was estimated for the sample period of 1980–2013. The existing literature evidences quantified interdependence through trade flows and ignores the role of the U.S. fiscal and monetary policies. This paper uses the concept of sensitivity, from the economic interdependence literature, to verify the long and short run relationships between the U.S. and Mexico in a context of trade integration. Our findings confirm Mexico’s sensitivity to unanticipated shocks in particular coming from the U.S. monetary policy, the exchange rate and the world oil price.

Keywords: economic interdependence; sensitivity; fiscal and monetary policies; Mexico; NAFTA

JEL Classification: F140; F150; C32; E52

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About the article

Published Online: 2016-03-08

Published in Print: 2016-03-01


Citation Information: Global Economy Journal, Volume 16, Issue 1, Pages 63–90, ISSN (Online) 1553-5304, ISSN (Print) 2194-5659, DOI: https://doi.org/10.1515/gej-2015-0034.

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