3 ms·
What was their boom based on?
by blahyawnblah 2y ago
What was their boom based on?
- alephnerd 2y agoManufacturing. Mexico was the original "China". China began booming in the 2000s because Mexico became expensive so a lot of low margins manufacturing left Tijuana and Guadalajara for Tianjin and Guangzhou [0], the same way how you now see manufacturing leaving China for cost reasons having a similar economic impact/shock [1]. It's telling that China only caught up with Mexico's GDP per Capita and HDI around 2019-20, and economic issues similar to those in Mexico in the 2000s (excluding the drug war related ones) began manifesting in China as well. For example, NPR [2], NYT [3][4], and BBC [5] reports from the early 2000s about Mexico are pretty similar to those you'd hear about China today. History doesn't repeat but it sure does rhyme. [0] - http://international-economy.com/TIE_Sp03_Rosen.pdf http://international-economy.com/TIE_Sp03_Rosen.pdf [1] - https://www.degruyter.com/document/doi/10.1515/cfer-2024-0023/html https://www.degruyter.com/document/doi/10.1515/cfer-2024-002... [2] - https://www.npr.org/2003/12/22/1556267/mexican-economy-struggles https://www.npr.org/2003/12/22/1556267/mexican-economy-strug... [3] - https://www.nytimes.com/2003/09/20/business/mexico-s-jobless-rate-hits-a-6-year-high.html https://www.nytimes.com/2003/09/20/business/mexico-s-jobless... [4] - https://www.nytimes.com/2003/05/16/business/mexico-misses-growth-forecast.html https://www.nytimes.com/2003/05/16/business/mexico-misses-gr... [5] - http://news.bbc.co.uk/2/hi/business/812893.stm http://news.bbc.co.uk/2/hi/business/812893.stm