Descripción:
T his research evaluates the long-term determinants of Mexican manufacturing competitive - ness in the U.S. market. To perform this task, an International Competitiveness ( IC ) index is constructed and then a model is specif ied and estimated by using three dif ferent econometric methods. T he empirical evidence across econometric techniques is consistent in indicating that IC is responsive to the peso-dollar real exchange rate, the yuan-dollar real exchange rate, labor productivity, wages, and the cost of credit. An important contribution of this paper is to show that manufacturing IC is inf luenced by the yuan-dollar real exchange rate and the real cost of credit.