The Cement Industry in Mexico: An Analysis of its Determinants

Produced by: 
Universidad Nacional Autónoma de México
Available from: 
October 2016
Paper author(s): 
Belem Vásquez
Salvador Corrales
Agricultural - Natural Resource Economics

Below, this paper analyzes and identifies some of the determinants that explain cement industry production in Mexico. The objective of this study was to identify the effect of exports and external competition on cement production, as well as internal drivers, such as investment, employment, and overall economic activity. As a function of augmented production, error correction models were estimated. The results indicate that the cement production exchange rate is positively related with exports and negatively with external competition. Overall economic activity showed a strong effect on production. Assuming that the industry operates as an oligopoly, the results imply that there are no incentives to favor the entrance of competitors.


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