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This paper analyzes the Mexican automobile and truck industries, and estimates the long run functional relationship between these industries and the automobile industry in the USA. The methodology consists of a cointegration analysis of the two series in the long run and the estimation of an autoregressive vector to evaluate the response of the Mexican automobile industry to shocks coming from the US automobile industry. The results show a longrun positive functional relationship between the US car industry and the Mexican car and truck industries, and also a shortterm positive shock with four periods. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of per capita income levels of Mexican border cities on labor employment of the US border city pairs. During the 90's, the northern border cities of Mexico experienced rapid growth in their population and in their manufacturing and services sectors. A generalized least squares econometric model was constructed in order to estimate the impact of the Mexican cities per capita income on the employment of services and manufacturing sectors of the US border cities. The results showed that the coefficients of the variables of income and border crossings positively affected the employment of the manufacturing and services sectors of the US border cities. [ABSTRACT FROM AUTHOR]