Affiliation:
1. Department of Economics, Facultad de Estudios Superiores Acatlán UNAM, Naucalpan de Juárez 53150, Mexico
2. Department of Latin American Studies, Graduate School of International and Area Studies, Hankuk University of Foreign Studies, Seoul 02450, Republic of Korea
Abstract
This article examines the trade relationship between Mexico and South Korea through the lens of trade in value-added perspective. Using the global input–output model, we dissect gross exports into their value-added components to analyze the sectors benefiting most from value-added generation in both countries. To do this, we use the multiregional input–output matrices developed by the Asian Development Bank (ADB). The results show a growing bilateral relationship between 2000 and 2021, with South Korea having a stronger position by generating a larger share of value-added linked to the bilateral relationship. Nevertheless, the gap has narrowed over time. Notably, South Korean exports to Mexico have substantially contributed to value-added generation in technology-based manufacturing sectors such as machinery, equipment, electronics, electrical, and optical products. Similarly, Mexico’s mining sector increasingly relies on exports to South Korea for value-added generation. The trends observed in this study’s findings persist even amidst the reconfiguration of Global Value Chains, indicating that a free trade agreement between Mexico and South Korea has the potential to further enhance value-added generation.
Funder
Hankuk University of Foreign Studies
Subject
General Mathematics,Engineering (miscellaneous),Computer Science (miscellaneous)
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