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The sheer size of remittances has fostered an interest in investigating the consequences of these flows, particularly in remittance-dependent economies. This study relies on monthly data from 1995M01 to 2021M05 and uses both frequency-domain and time-varying causality approaches to investigate the asymmetric causality relationships between real effective exchange rates and remittances in Mexico. Two key results are obtained. First, according to the frequency domain causality test results, positive shocks to remittances lead to appreciation in the Mexican peso in the medium- and long-run cycles, but negative shocks to remittances do not lead to depreciation in the Mexican peso, thus suggesting non-asymmetry. Second, the results of time-varying causality based on heterogeneous errors support asymmetric behavior between real effective exchange rates and remittances, underscoring the importance of allowing asymmetries when investigating the causal relationship. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between Mexican money demand and three economic factors: real income, inflation rate and exchange rate, and the relationship between exchange rate and money demand is the most concerned. Using the quarterly data of Mexico from 2000 to 2022, we explore whether the exchange rate will symmetrically affect the demand for money in the short and long term. The results show that in the long run, the impact of real income and inflation rate on money demand is the same as the conjecture, both are positive. However, the present paper does not find an asymmetric effect of the exchange rate, possibly due to the lack of research data or the short time span. [ABSTRACT FROM AUTHOR]

Commercial banks and currency kiosk bureaus provide exchange services throughout Ciudad Juarez. This study employs newspaper data to examine how the bank and kiosk sell-buy spreads are affected by border crossings, the bilateral peso per dollar exchange rate, and 90-day Mexico – U.S. treasury yield differentials. Sample data are from January 2009 through June 2016. Parameter estimation is carried out using a GLS ARMAX procedure. Empirical results indicate that bank spreads increase as the peso weakens. Exchange bureau spreads decrease as cross-border traffic flows increase. Currency kiosk spreads tend to widen as 90-day yield gaps become larger. [ABSTRACT FROM AUTHOR]

This research aims to determine the effect of the global COVID-19 pandemic on the exchange rate, where the microstructure approach will be used, which uses long and short positions in the futures market. Weekly data will be available during the period 2010-2023. A negative relationship has been found between the exchange rate and the net positions, as well as a positive relationship between the exchange rate and the interest rate differential between Mexico and the United States, as indicates the existing literature. The main finding has been the presence of structural change in the relationship due to the COVID-19 pandemic. Therefore, it is concluded that the microstructure approach is an adequate model to explain exchange rate fluctuations in the short-term, where the relationship has suffered a structural change due to the pandemic. [ABSTRACT FROM AUTHOR]

We estimate the determinants (terms of trade, tradable to non-tradable price differentials, interest rate differentials, forward exchange rate and risk premium) of the Mexican bilateral real exchange rate (q) for the short and long run by using an Autoregressive Distributed Lag model (ARDL, Pesaran and Shin et al. (2001)) for Mexico (2001.01–2022.12). The inclusion of commercial and financial variables and finding empirical evidence of cointegration only for 2009.01–2022.12 are the main contributions. Our results indicate no cointegrating relationship either for the entire sample, or for 2001.01–2008.12. This finding has to do with the increasing international financialization process, after the 2008–2009 Great Financial Crisis. Using a double log model we find that: a) there is a strong short-run autoregressive effect of q of up to 4 lags (0.75), b) that the Balassa-Samuelson Effect is the largest in the model (-0.27 and -1.11 for short and long terms), c) the next most important factor is the terms of trade (-0.126 and -0.51, respectively), d) there are considerable, although lesser, effects of financial variables: forward exchange rate (0.0155 and 0.063, respectively) and risk-premium (0.009 and 0.036, respectively), e) there is a clear long-term trend of real depreciation expressed by the trend of 0.0020, which suggests that the PPP hypothesis applies. [ABSTRACT FROM AUTHOR]

This study re-formulates and re-examines the traditional bilateral trade balance (TB) concept (ratio) in the USA-Mexico case using a different methodology. This re-examination is constructed on newly formulated decomposed-export-based TBs—namely, domestic-export-based TB and re-export-based TB. Since the undecomposed traditional total-export-based TB is expressed as a total export/import ratio, it may misrepresent the actual nature of bilateral trade of this country with Mexico because the USA also considerably re-exports to Mexico. The main empirical finding confirms the need for using decomposed-export-based TBs in trade models for the USA since the impacts of exchange rate and income on undecomposed and decomposed export-based TBs of the USA are entirely different. For example, while depreciation in the USD improves the re-export-based TB for only 13 commodities, the same change in the USD improves the domestic-export-based TB for 18. Some empirical inferences from findings are as follows: (i) Mexican consumers (MC) with a stronger Peso purchase US domestically produced commodities more than re-exported ones; (ii) MC with a weaker Peso stop purchasing US re-exported commodities more than the US domestically produced ones; (iii) MC are appreciated/depreciated-Peso-sensitive to US domestically produced commodities more than re-exported ones. [ABSTRACT FROM AUTHOR]

This paper argues that the null or weak response of emerging market currencies to domestic monetary policy documented in the literature is the result of wide event windows. An event study with intraday data for Mexico shows that an unanticipated tightening appreciates the currency and flattens the yield curve, consistent with the evidence for advanced economies. With daily event windows, however, only the yield curve responds to monetary policy. Noise in daily exchange rate returns explains the lack of response of the currency. Such noise gives rise to a bias that declines after controlling for potential omitted variables. [ABSTRACT FROM AUTHOR]

In contrast to the oil boom in the USA, Mexico's oil production has been declining continuously for the last 15 years. Lower output in the sector has affected various aspects of Mexico's economy, one of which we found to be the real exchange rate: the decrease in productivity in the oil sector compared to the non-tradable sector, which in turn has caused a depreciation of the real exchange rate. This is an inverse Balassa–Samuelson effect, and the experience of Mexico serves as a wake-up call to countries whose economies are highly dependent on non-renewable commodities. To perform our analysis, we begin by calculating productivity by sector as total factor productivity. We then estimate the determinants of the real exchange rate by including the productivity of Mexico's oil- and non-oil tradable sectors in order to disentangle their contributions. [ABSTRACT FROM AUTHOR]

A monthly frequency metropolitan business cycle downturn likelihood equation is estimated for Ciudad Juarez. The binary index of economic conditions is based upon monthly IMMEX export oriented manufacturing employment. A dynamic probit methodology is used for parameter estimation. Continuous explanatory variables include a 1-year minus 1-month Mexico interest rate spread, a 2015 = 100 weighted real exchange rate index, and a 10-year minus 3-month USA interest rate spread. Parameter estimation results confirm the various hypotheses examined. However, model simulation outcomes are less favorable with the results indicating that accurate forecasting of the post-2010 business cycles may require additional refinement to the index. [ABSTRACT FROM AUTHOR]

Objective: the objective of this study was to analyze the participation of women in the labor market and the effect on economic growth in Mexico, 2000-2021. Design/Methodology/Approach: three multiple linear regression models were developed using the Ordinary Least Squares method. Results: the most statistically significant variables were the exchange rate, wage and the employed female population. The most significant elasticities were found at an increase of 10.0% of the employed female population, the GDP would increase by 7.83%. For the model where only the employed female population was analized, at an increase of 10% in it, the GDP would increase by 10.01%. Study limitations/Implications: the main limitation was that the information is not available from a single source and the figures vary depending on the official institution. Findings/Conclusions: based on the results obtained, it is concluded that the participation of women in the labor market does increase economic growth. [ABSTRACT FROM AUTHOR]

Financial innovation seeks to reduce risk for investors through the creation of new products. Internationally, innovation processes have resulted in better structured financial instruments. These instruments allow people from other countries to invest in shares of companies in developing markets, such as Mexico. This paper analyzes the performance of the returns granted by the iShares MCSI Mexico, an Exchange-Traded Fund (ETF), whose portfolio is made up of forty-four Mexican stocks. It is compared to the performance of the Mexican market through the IPyC and the exchange rate. Using the EGARCH methodology, the ETF was found to be much riskier than the other two instruments over a three-year period, especially during the period when the Mexican economy was shut down due to the pandemic. [ABSTRACT FROM AUTHOR]

This paper aims to examine the determinants of the exchange rate based on the portfolio balance model. Using the Autoregressive Distributed Lag Model (ARDL), we empirically evaluate the effect of private net foreign assets and the traditional factors affecting the exchange rate dynamics in Mexico from 1990-2019. The main results suggest that: i) the portfolio approach constitutes a consistent system to explain the behavior of the exchange rate; ii) an increase in economic activity and interest rate differentials triggers an appreciation of the exchange rate; iii) an increase in the inflation gap and private net foreign assets causes a depreciation. [ABSTRACT FROM AUTHOR]

Copyright of Anáhuac Journal is the property of Universidad Anahuac del Sur S.C. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of EconoQuantum is the property of Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Investigación Económica is the property of Universidad Nacional Autonoma de Mexico, Facultad de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Economic History Research / Investigaciones de Historia Económica is the property of Asociacion Espanola de Historia Economica and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines the effects of the economic policy uncertainty (EPU) index of the US on the exchange rates and stock returns of Korea, Mexico, Poland, and Russia. A time-varying causality test showed that the impacts of EPU of the US on the exchange and stock market of emerging countries could be affected by regime changes. A quantile regression model suggested that the effect of the increase/decrease in the EPU of the US may affect financial variables, while it was indicated that effects of the EPU of the US on the exchange rates and stock returns are asymmetrical. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Investigación Económica is the property of Universidad Nacional Autonoma de Mexico, Facultad de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: The literature mostly investigates the impact of trade and financial integration on business cycle synchronization. The author differs by focusing on the real effective exchange rate as the target variable in the North American Free Trade Agreement (NAFTA) region. In particular, the author investigates synchronization by analyzing the short- and long-run dynamics of the real effective exchange rates of Canada, Mexico and the US for 2008–2019. Design/methodology/approach: The author first employs stationarity and cointegration tests to specify and estimate the long-run equilibrium relation between the real effective exchange rates of Canada, Mexico and the US. The author then specifies and estimates an error-correction model for each real effective exchange rate in order to investigate whether the adjustment in eliminating disequilibrium is asymmetric. Findings: The results indicate that the real effective exchange rates of Canada, Mexico and the US are cointegrated with only one long-run equilibrium relation. Canada's real effective exchange rate responds symmetrically to eliminate both negative and positive disequilibrium with a similar speed of adjustment. However, the response of Mexico's real effective exchange rate is asymmetric, as it responds to eliminate only positive disequilibrium. The US real effective exchange rate does not respond to disequilibrium, perhaps because it has a large economy with much stronger competition beyond the NAFTA region than both Canada and Mexico. Originality/value: This is the first study that investigates real effective exchange rate synchronization in the NAFTA region. [ABSTRACT FROM AUTHOR]

In this paper, we follow Bresser-Pereira et al. (2021) and estimate for Mexico a a series of the real exchange rate (RER) that balances the current account for Mexico for the period 2001q1-2019q4. In this process we take into account numerous determinants, including policy variables and financial indicators the evolution of the terms of trade, as well as a proxi for the Balassa-Samuelson effects, inter alia. Our results show that in most of the period analyzed there has been a trend tendency towards overvaluation, with the RER fluctuating above its equilibrium level. With cointegrating methods, and dynamic ordinary least squared (DOLS) techniques, we examined the effects of exchange rate under and overvaluation on manufacturing; disaggregated in three sectors: i) technology intensive, ii) natural resource intensive and iii) labor intensive activities. Overall, our results indicate that the real exchange rate has a significant influence on the rate of expansion of Mexico's manufacturing real GDP. [ABSTRACT FROM AUTHOR]

Evidence indicates that since the early 2000s, the central bank in Mexico has been able to implement a solid and credible monetary policy, which has resulted in maintaining the purchasing power of the Mexican peso. Motivated by such evidence and the fact that Mexico (like Canada and the US) is a major oil‐producing country, we set out to examine the dynamic relationship among oil prices and Mexico‐Canada and Mexico‐US exchange rates for 2000–2020. Our findings indicate that (i) these series are co‐integrated and possess a long‐run equilibrium relationship, (ii) oil prices asymmetrically respond to eliminate disequilibrium and (iii) both Mexico‐Canada and Mexico‐US exchange rates are weakly exogenous. Such findings point to the success of the central bank in largely shielding Mexico's exchange rates from oil price fluctuations in the NAFTA region. [ABSTRACT FROM AUTHOR]

Objective: To determine through econometric analysis which variables —inflation, real exchange rate, unemployment, and consumption— have a major impact on workers’ wages and, therefore, on production. Design/Methodology/Approach: We developed a multiple linear regression model for the behavior of macroeconomic variables in Mexico from 1995 to 2018, using the ordinary least squares method (OLS) and the Gretl statistical package. Results: The analysis of the model showed that inflation, exchange rate, and unemployment are highly significant, unlike consumption. For the model of real wages in Mexico, we obtained a 0.87 coefficient of determination —i.e., the variables included in the model account for 87% of the wages’ behavior. The relation of consumption, unemployment, and inflation to wages was as expected. Regarding the exchange rate, the result was the opposite of the expectations. The wage-unemployment elasticity had the greatest impact. Study Limitations/Implications: The database used was the main limitation because it relies on official sources, which lack data and show inconsistencies. Findings/Conclusions: The study helped to determine whether or not the proposed variables affected the national economic growth. Mexico is not a first-world country than can offer high salaries; therefore, the Mexican economy must continue to grow, before it reaches a higher per capita income. In this regard, it is essential to consider the extent to which the new government’s proposals will be able to face the reality: very few and very low-quality jobs are created, despite what the official figures say. [ABSTRACT FROM AUTHOR]

This article analyzes the effects of economic policy uncertainty (EPU) on tourism demand from the top nine OECD countries in Mexico during 2010–2018. The research studies two groups of economies: developed and emerging economies. Using panel data, the results show evidence of transversal dependence in income, exchange rate, EPU, and tourism arrivals. These variables are integrated of order one. In addition, there is a long-run equilibrium relationship among these variables. The group of developed countries show evidence of a negative relationship between tourism demand and EPU, implying that a higher level of uncertainty leads to a decline in tourism demand. However, in emerging economies this relationship is positive. In addition, results suggest a positive relationship of both income and exchange rate to tourism demand, which implies that a higher level of income in the OECD countries and a depreciation of the Mexican exchange rate might generate greater tourism demand in Mexico. In terms of short- and long-term causality relationship, evidence indicates that exchange rate, income, and EPU contain important information that contribute to forecast the behavior of tourism demand in Mexico. [ABSTRACT FROM AUTHOR]

In Latin America, Brazil, Chile, Colombia, Mexico and Peru, have been using Inflation Targeting for at least two decades, and although there were significant improvements in social indicators, macroeconomic results have been mixed. In particular, the real exchange rate has been much more volatile and growth was significantly slower in Brazil and Mexico. In accordance with these facts, we sketch a simple New Consensus open economy model with hysteresis and we show that a policy that targets inflation disregarding the effects on the real exchange rate may have negative long-run effects. [ABSTRACT FROM AUTHOR]

Copyright of Investigación Económica is the property of Universidad Nacional Autonoma de Mexico, Facultad de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Although the main goal of the original NAFTA treaty was to promote trade among the U.S., Canada, and Mexico, exchange rate uncertainty among the members is still a factor affecting trade. A previous study that assessed asymmetric effects of the real peso‐dollar volatility on trade flows between Mexico and the U.S. used the nonlinear ARDL approach and found that increased (decreased) volatility hurts (boosts) exports of nearly 50% of the industries that trade between the two countries. In this paper, we carry out the same analysis using trade data from 34 (24) large U.S. exporting (importing) industries to (from) Canada. We find that nearly 38% of the industries are affected by the U.S. dollar‐Canadian dollar volatility. However, the majority of the affected industries export more when exchange rate volatility increases or decreases. It appears that traders are more risk tolerant in the case of U.S.‐Canada trade but risk averse in the case of U.S.‐Mexico. [ABSTRACT FROM AUTHOR]

The main aim of this paper is to empirically test the effect of both public consumption and investment on the exchange rate in the Mexican economy. Recent increasing literature on the topic has pointed out that effects in either direction of disaggregated public expenditure on the exchange rate can be expected. Therefore, we investigate this using a system of cointegrated equations. The simulations' results suggest that expansions of government consumption leave unchanged the real exchange rate and depreciate the nominal one; on the contrary, government investment also produces a nominal depreciation, and only large shocks produce small real appreciations. These movements of the exchange rate are in any case negligible. At the economic policy level, the results support the use of fiscal policy to achieve growth and developmental goals. [ABSTRACT FROM AUTHOR]

This research aims to analyze the manufacturing industry of the northern border of Mexico to identify its development trends in the period of 1999 to 2019. It is hypothesized that its performance has been of high specialization, which makes the presence of deindustrialization as a pattern of structural change difficult. To reach the objective and test the hypothesis, a structural change index, a specialization coefficient and a model with panel data was calculated to analyze the determinants of the specialization coefficient. The results suggest that there is no process of deindustrialization on the northern border, due to the high specialization in manufacturing that is explained by variables that favor manufacturing such as the gdp of the United States, the real exchange rate, investment and the employed population. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study offers a new unit root test procedure that is based on the combination of Fourier ADF and Fourier KSS unit root tests by using Fisher's statistics. The main advantage of this approach is that it is a useful method, especially in cases where the findings obtained from the two test methods differ. In this paper, we investigate the mean-reverting properties of the real exchange rate series for seven fragile economies. Fourier ADF and Fourier KSS tests results point to different findings. When the combination unit root test is applied, it is confirmed that the real exchange rate series are stationary for four fragile economies, namely Brazil, India, Indonesia, and Mexico. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista Nicolaita de Estudios Económicos is the property of Universidad Michoacana de San Nicolas de Hidalgo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper is an attempt to examine the long-run and short-run relationship between inflation, exchange rate, and renewable energy use in Mexico during the period 1990–2019 by employing ARDL bounds test approach. The results of the study show that in the long-run there is a bidirectional causality between inflation and exchange rate. Renewable energy use in Mexico also impacts both inflation and exchange rate but exchange rate and inflation do not impact renewable energy in the long-run. The short-run ARDL model results provides that an increase in renewable energy use in Mexico has the impact of encouraging exchange rate appreciation. The results of this paper shows that renewable energy does not only reduce carbon-dioxide emissions which causes global warming, rather it encourages exchange rate appreciation in Mexico. Therefore, renewable energy use should be encouraged since it will cause currency appreciation of nations as well as leading to zero carbon in the future, a goal by the United Nations. High inflation in Mexico is also found to cause currency depreciation and vice versa. [ABSTRACT FROM AUTHOR]

The main goal of the former NAFTA and current United States–Mexico–Canada Agreement (USMCA) was to remove barriers to trade and increase trade in both directions. Clearly, the goal will be achieved more effectively if the real exchange rate was fixed among the three members. But they are not. They change not only due to changes in the nominal exchange rates but also due to changes in prices. We investigate whether the real peso-Canadian dollar play any role in the trade between Mexico and Canada. We consider the trade balance of 16 industries that trade between the two countries and find that when we estimated a traditional linear model, indeed, we did not find much of a long-run impact on the trade balances. However, when we estimated a nonlinear model, we discovered long-run effects in 11 industries. While in two industries we found evidence of symmetric J-curve, in nine industries the concept of asymmetric inverse J-curve received support, included one of the largest industries that engage in 1/3rd of the trade. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Recent advances in nonlinear modeling or asymmetry analysis have revealed that nonlinear models produce more significant results compared to linear models. Only one study has demonstrated this with establishing the link between exchange rate volatility and trade flows. We add to the body of literature by considering the possibility of asymmetric effects of exchange rate volatility on commodity trade between Mexico and the U.S. After considering a total of 95 U.S. exporting industries to Mexico and 89 U.S. importing industries from Mexico, we find evidence of short‐run asymmetric effects in 54 exporting and 46 importing industries. Short‐run asymmetric effects translate into long‐run asymmetric effects in 44 exporting and 47 importing industries. These asymmetric effects were masked by the linear model which assumes the effects to be symmetric and they have different implication for different industries. [ABSTRACT FROM AUTHOR]

This paper examines the effects of foreign exchange (FX) communications on FX markets in Colombia and Mexico. Our estimations follow the calendar-time portfolio approach using daily data between 2000 and 2019 on exchange rates and known risk factors. We find an asymmetric effect of such communications: while there is strong evidence indicating that communications aimed at weakening the local currency affect the exchange rate level in the intended direction, there is no evidence of impact when examining communications intended to strengthen it. These results are consistent with fear of appreciation and with previous evidence from developed economies. • Monetary authorities use foreign exchange communications (FXC) to influence the exchange rate. • FXC in Colombia and Mexico are evaluated during the 2001-2019 period. • The calendar-time portfolio approach is used to evaluate FXC in both countries. • FXC aimed at weakening the domestic currency affect the exchange rate, while those intended to strength it have no impact. • Results are consistent with fear of appreciation and previous evidence from advanced economies. [ABSTRACT FROM AUTHOR]

The Automotive Sector is one of the most important worldwide, in recent years it has had an important relevance for its high contribution in the economic development of Mexico, it is also the first generator of foreign exchange, it is an important generator of direct jobs, and it is the main recipient of foreign direct investment. It is observed that Mexico is among the most prominent countries in the production and export of automobiles; therefore it becomes the seventh largest producer and fourth largest exporter of automobiles worldwide. The main objective was to find the positive relationship between the variables infrastructure, investment, exchange rate and human capital with exports of the automotive sector in Mexico for the period 1993-2017. The causality study is also carried out by applying the Granger causality test (1969), in order to study whether there is a causal relationship between the variables. As a result of the causality tests, it was found that there is a two-way causality relationship of the exchange rate towards exports of the automotive sector. [ABSTRACT FROM AUTHOR]

Our contribution aims at rethinking the role of the exchange rate as a tool to boost investment and structural change, by constructing an analytical macro model based on Frenkel and Ros (2006), Ros (2015) and Dvoskin and Feldman (2018). We consider, in particular, the financial cost of depreciation, which is generated by imbalances in the foreign exchange rate position in firms' balance sheet. The imbalance, as stylized facts for Mexico show, is due to the excess of imported capital goods and the issuance of foreign exchange debt. Results from the model shows that exchange rate policies work to promote capital accumulation and structural change, however, there are specific conditions under which they must operate. [ABSTRACT FROM AUTHOR]

Copyright of Ecos de Economía is the property of Universidad EAFIT and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper is aimed at assessing the spillover effects of the US Economic Policy Uncertainty (EPU) in macroeconomic variables of major Latin American Countries (LAC): Mexico, Colombia, Brazil, and Chile. To do that, we estimate a set of two-country Structural Vector Autoregressive (SVAR) models for 1997-2019; each model includes the US and one of the LAC. We use the following variables: EPU indexes, exchange rates, consumer price indexes, industrial production (IP), and interest rates (IR) of the US and the studied LAC. The main finding is that positive shocks in the US EPU index lead to currency depreciation for all four LAC; the largest effect is for Mexico. Other statistically significant results are a brief and small positive impact on Colombia's IP and a positive impact on Mexico's IR. The remaining LAC's estimates are statistically insignificant. For this reason, we applied Rossi and Wang's (2019) robust Granger causality tests that considers structural breaks. Finally, the estimates before and after the 2008 financial crisis suggest that LAC became slightly more responsive to US EPU shocks after the crisis. [ABSTRACT FROM AUTHOR]

Copyright of Ensayos - Revista de Economía is the property of Ensayos Revista de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Reproduction by seed promotes genetic diversity in maguey (Agave salmiana), and if fertilization is adequate, it can increase growth. In pulque maguey, although reproduction by seed is not a common practice, its study is necessary. For this reason, the objectives of this study were 1) to evaluate the effect of organic and chemical fertilization on growth and 2) to determine the CO2 exchange rate (CER) in two conditions of soil moisture in three variants of A. salmiana (subsp. crassispina, var. salmiana and var. ferox) obtained from seed in San Bartolomé Actopan, municipality of Temascalapa, State of Mexico. The hypothesis was that plants treated with chemical fertilizer will have greater growth than those treated with organic fertilizer and the control, and plants fertilized with organic and chemical fertilizer will have a higher CER in two conditions of soil moisture. The experimental design was completely randomized with n=11 for growth variables, n=3 for nutrient content and CO2 exchange rate. Growth was measured every month in 2.9- to 3.6-yearold plants, and CO2 exchange rate was measured in 3.6-yearold plants with irrigation and in 3.75-year-old plants under water stress. Organic fertilizer from pig manure favored plant height and diameter and number of leaves. The subespecies crassispina had the highest values of the evaluated variables, and A. salmiana var. salmiana cultivated with chemical fertilization was outstanding for the number of shoots emitted. The highest CO2 exchange rate occurred between 22:00 and 02:00 h and was higher in plants with abundant soil moisture (irrigated) than in plants with moisture below permanent wilting point. In the latter condition, the plants grown with organic and chemical fertilizer assimilated 60% more CO2 than the control. [ABSTRACT FROM AUTHOR]

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While many studies have documented the positive effect the real exchange rate (RER) can have on the rate of economic growth in developing countries, the channels of this effect are not yet well understood. The paper contributes to this literature by studying the pass-through of the RER into aggregate relative profit margins in the manufacturing and whole tradables sectors with respect to non-tradables in Mexico during the period 1990–2017. Based on estimates from non-linear error-correction ARDL models, the paper shows the RER affects relative profit margins asymmetrically – with larger reductions after appreciations than increases after depreciations – and that this asymmetry comes from the asymmetric adjustment of both relative costs and to lower extent relative prices. The results support the hypothesis of an RER's tradables-led economic growth channel and help explain why the RER may affect capital accumulation asymmetrically, with stronger negative effects from appreciations than the positive effects of depreciations, as reported in recent research on Mexico. [ABSTRACT FROM AUTHOR]

Price risk management for corn production has a support price component; however, this is not universal and the operating rules themselves indicate that producers having over 20 ha are not eligible. This reveals part of the national corn production that has yet to manage price risk. A price risk management tool is a derivative market, which is non-existent in Mexico. An alternative is to manage this risk in a foreign futures market, which requires setting a price in a foreign currency under the conditions of that foreign market. For such hedge to be potentially efficient, the necessity of a stable relationship between domestic prices, future foreign prices and the exchange rate is essential; using a vector time series approach, the assessed hypothesis includes a cointegrating vector between the domestic price, future price and exchange rate variables, and therefore shows an effective risk management of the domestic price of corn (Zea mays L.) from the future corn price quoted in Chicago. Results show that the existence of a long-term relationship between the domestic and future prices of corn with the exchange rate mediation cannot be rejected. This implies the existence of a hedging potential, despite a foreign future price and the peso-dollar exchange rate itself. [ABSTRACT FROM AUTHOR]