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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 Realidad Economica is the property of Realidad 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.)

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]

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.)