Trade in Value Added in Gross Exports: A Better Metric for Understanding Texas-Mexico Trade Flows

Alternative Title

Valor Agregado contenido en el Valor Bruto de las exportaciones: una mejor métrica para comprender los flujos comerciales de Texas y México

Authors

Noé Arón Fuentes, El Colegio de la Frontera Norte
Alejandro Brugués, El Colegio de la Frontera Norte
Gabriel González-König
Melissa Floca, University of California - San Diego

Publication Date

2022

Abstract

The purpose of this research is to calculate the value-added trade between Texas and Mexico. We argue that a better metric to understand trade flow should be based on value added. U.S. trade deficit with Mexico only reflects gross trade and does not accurately portray the complexities of commercial flows between the two countries. Given that Mexico is Texas' most important trading partner, the transformation of gross trade into value-added trade flows will provide a clearer understanding of this important relationship.

Document Type

Article

Keywords

trade in value added, Texas, Mexico, trade flows, gross exports, biregional, bilateral, trade deficit

Disciplines

Economic Policy | International Economics | Regional Economics

Publisher

Mission Foods Texas-Mexico Center

Format

.pdf

Language

ENG

Recommended Citation

Fuentes, Noé Arón; Brugués, Alejandro; González-König, Gabriel; and Floca, Melissa, "Trade in Value Added in Gross Exports: A Better Metric for Understanding Texas-Mexico Trade Flows" (2022). Mission Foods Texas-Mexico Center Research. 20.
https://scholar.smu.edu/texasmexico-research/20