A novel mechanism for measuring the competition between China and Mexico in the U.S. furniture market is presented in this work. Such a mechanism takes industry upgrading as the main indicator to find out the causes of China´s success and the loss of competitiveness of Mexico in the U.S. market. The proposed methodology combines elements of the Global Commodity and Global Value Chain Theories with arguments based on the Territorial Endogeneity and the Systemic Competitiveness frameworks. This approach proves that in order to compete in the global (furniture) value chain, countries should first of all foster the level of territorial endogeneity existing within their industry, i.e., the level of correlation between at least three main actors: private companies, governmental authorities (at the local and federal level) and foreign enterprises and their respective economic policies. The level of territorial endogeneity is therefore the main indicator to measure industry upgrading and hence the competitiveness of Chinese and Mexican exports in the U.S. furniture market.
Lidia Martínez Murillo
China Mexico U.S. market competition competitiveness furniture global commodity chains upgrading