Scarce Water Resources in the Regional Development of Northern Mexico: an Analysis of the Brewing Industry

Abstract

This study aimed to analyze the beer industry in Mexico's Northern Border region within the context of water scarcity. According to international statistics, beer accounts for approximately 75 percent of global alcoholic beverage consumption. Mexico has stood out as the leading beer exporter to the global market since 2010, with the United States serving as its primary destination, receiving nearly 80 percent of these exports. A quantitative methodology based on two complementary techniques was employed: first, the shift-share method was used to analyze the border region's production structure and identify the significance of the beer industry within regional dynamics; second, a panel econometric model was estimated to explore the effects of explanatory variables associated with beer production. The results suggest that the beer industry maintains a high level of specialization and production concentration in the Northern Border region. Furthermore, the panel model highlights concession costs and the availability of water for industrial use as factors influencing beer production.