Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296995 
Year of Publication: 
2023
Series/Report no.: 
Working Papers No. 2023-10
Publisher: 
Banco de México, Ciudad de México
Abstract: 
This paper analyzes the contribution of supply and demand shocks, and labor market shocks, to the evolution of regional production and inflation of manufactured goods in Mexico within the context of the pandemic. Under the identification of a Bayesian Structural Vector Autoregressive (SBVAR) model with sign restrictions, it is found that since 2021, external demand shocks increased their contribution relative to local shocks in explaining the growth of manufactured goods production in all regions except the South; meanwhile, external supply shocks increased their positive contribution in explaining inflationary pressures across all regions. On the other hand, from 2022 onwards, labor supply shocks have contributed to the behavior of the production and inflation of manufactured goods in the Northern and North-Central regions.
Subjects: 
External Shocks
Inflation
Manufacturing
SVAR
JEL: 
E31
F41
R11
Document Type: 
Working Paper
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