Externalities in the production of the aerospace industry in Mexico

Abstract

This article presents an empirical study on the presence of externalities in the production of the
aerospace industry, derived from the agglomeration of the industry dedicated to transportation
equipment, where there will be a tendency for the aerospace industry to locate in those areas that
present benefits. derived from the externalities generated by the transport industry as a whole;
That said, the objective of this research is to analyze the interference that externalities have by the
transport industry on the development of the aerospace industry. A multivariate econometric model
is applied where variables such as the manufacture of automobiles, boats, railway equipment, etc. are
considered. The results provide evidence on the presence of positive externalities that influence the
location and production of the aerospace industry in Mexico.