Analysis of the intersectoral synchronization of the Mexican economy

• Published in: Structural change and economic dynamics Vol. 64; pp. 225 - 235
• Main Authors: López, María del Carmen Delgado, Fonseca-Zendejas, Alejandro Steven
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.03.2023
• Subjects: Comovement; Cycles; Linkages; Phase synchronization; Social accounting matrix; Linkages; Cycles; Social accounting matrix; Comovement; Phase synchronization
• ISSN: 0954-349X; 1873-6017
• DOI: 10.1016/j.strueco.2022.12.013

•Intersectoral transmission effects by examining comovements between productive sectors in the economy.•The manufacturing industry presents greater synchronization with the rest of the productive activities.•Intersectoral linkages explain the coupling behaviour of the production sectors. In this paper, we investigate the sectoral interrelation of the Mexican economy addressed by a nonparametric mechanism known as phase synchronization that emphasizes in the business cycles comovements between oscillating systems (productive activities), which tend to synchronize their fluctuations. The sectors considered for this application were selected through their input‒output linkages captured through a social accounting matrix. The results suggest that production sectors with higher intersectoral linkages demonstrate synchronization. Among all productive sectors, the manufacturing industry is the sector that presents greater synchronization with the rest of the productive activities.