The quality of Mexico’s manufacturing exports in the context of international production fragmentation

Abstract

Hausmann, Rodrik, and Klinger determine the quality of exports according to the level of complexity of economies. The method is based on the closeness of goods produced within a country, which is established by the production structure. Products simultaneously present in a country’s production structure are close. Products are specified according to the Standard International Trade Classification (sitc) and, more recently, to the Harmonized System. We argue that, in the context of increasing international production fragmentation, the complexity of economies should be established in line with their specialization by stages in the production processes. The quality of Mexican exports is estimated based on indicators of export composition, origin of the value of exports, backward linkages of exporting sectors, types of exported goods and their use by importers, capital ownership of exporting firms, research, and development in exporting sectors, as well as unit prices.