PRODUCTION AND COMPETITIVENESS OF MEXICAN COTTON IN THE INTERNATIONAL CONTEXT

Abstract

Objective: To analyze the production and competitiveness of Mexican cotton in the world market.

Design/methodology/approach: Five indicators were calculated: Import Penetration Rate (IPR), Export Coefficient (EC), Tradability Indicator (TI), Lafay Index (LI) and International Competition Exposure Rate (ICER), for the period 1960-2017.

Results: The IPR was 0.5% from 1960 to 1985, the imports had little weight in consumption, while the EC was 58.9% for that period; Mexican cotton was competitive. However, from 1986 to 2017, the IPR was 59.8% on average and the EC was 25.9%, the competitiveness of cotton decreased. The TI in the 1960s was 184.8% and since 1991, the capacity to generate exportable surpluses was lost. The LI shows that Mexico had comparative advantages in cotton production from 1960 to 1989, however, as of 1991 such advantages were lost. The ICER indicates that national cotton faces high levels of competition in the international market.

Limitations on study/implications: The indicators were calculated with the volume of the variables required. The statistics corresponding to the value are not available for recent years.

Findings/conclusions: The indicators show the loss of competitiveness of Mexican cotton; in recent years, production has recovered, but there is no self-sufficiency in its consumption.