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    Lower US corporate taxes would not reverse Mexico’s competitive advantage in manufacturing

    Published on Tuesday, November 21, 2017 | Updated on Friday, December 15, 2017

    Lower US corporate taxes would not reverse Mexico’s competitive advantage in manufacturing

    Summary

    Mexico would continue to be more competitive than the United States in the production of manufactured goods even if the latter were to cut its corporate tax rate from 35% to 20%. The difference in labor costs alone is a sufficient factor for Mexico to remain more competitive than the US

    Geographies

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    Authors

    Carlos Serrano BBVA Research - Chief Economist
    Javier Amador BBVA Research - Principal Economist
    Iván Martínez Urquijo BBVA Research - Principal Economist
    Arnulfo Rodríguez BBVA Research - Principal Economist
    Saide Aránzazu Salazar BBVA Research - Principal Economist

    Documents and files


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    Report (PDF)

    171121_CompetitividadManufacturera

    Spanish - November 21, 2017

    Report (PDF)

    171128_CompetitividadManufacturera_eng

    English - November 21, 2017

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