Upgrading strategy in global value chains: The case of the aerospace sector in Mexico
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Abstract
Purpose ̶ to analyze Mexico’s integration strategy in the global aerospace industry considering entry barriers with regards to regulations, property rights, standardization requirements and financing which limit upgrading.
Methodology ̶ a global value chain methodology from the Global Value Chain Initiative perspective was utilized and also graph theory.
Results ̶ the results of this integration strategy show that although Mexico has diversified its trade significantly, it remains marginal and irrelevant in the context of global aerospace trade a circumstance that has persisted for more than two decades.
Limitations ̶ Graph theory allows us to define the scope of Mexico's aerospace trade; however, it is limited to define local linkages, which we know are not significant due to the literature review.
Findings ̶ the integration strategy to the GVC followed by Mexico has failed since it has not been able to scale towards activities of greater value; besides, Mexico's participation in world trade is still marginal.
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