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CALI BAJA CALI BAJA Competitiveness STUDY Competitiveness STUDY Professor Alejandro Diaz-Bautista Professor Alejandro Diaz-Bautista [email protected] El Colegio de la Frontera Norte El Colegio de la Frontera Norte (Colef) Presentation (Colef) Presentation November 5, 2013. November 5, 2013. A cross-border collaborative research effort involving the Cali-Baja Mega Region Initiative, the Colegio de la Frontera Norte, the University of California-San Diego’s Center for U.S.-Mexican Studies, and the U.S. and Mexican Consulates of Tijuana and San Diego. La Megaregión Económica y de Competitividad Binacional de Baja California y Sur de California. The Southern California – Baja California Competitive Mega region.

Presentation Southern California – Baja California Competitive Mega region

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La Megaregión Económica y de Competitividad Binacional de Baja California y Sur de California. The Southern California – Baja California Competitive Mega region.

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Page 1: Presentation Southern California – Baja California Competitive Mega region

CALI BAJACALI BAJACompetitiveness STUDYCompetitiveness STUDY

Professor Alejandro Diaz-BautistaProfessor Alejandro Diaz-Bautista

[email protected]

El Colegio de la Frontera Norte (Colef) El Colegio de la Frontera Norte (Colef) Presentation Presentation

November 5, 2013.November 5, 2013.

A cross-border collaborative research effort involving the Cali-Baja Mega RegionInitiative, the Colegio de la Frontera Norte, the University of California-San Diego’s Center for U.S.-Mexican Studies, and the U.S. and Mexican Consulates of Tijuana and San Diego.

La Megaregión Económica y de Competitividad Binacional de Baja California y Sur de California.The Southern California – Baja California Competitive Mega region.

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La Megaregión Económica y de Competitividad Binacional de Baja California

y Sur de California.The Southern California – Baja California

Competitive Mega region.• La integración de las economías de Norteamérica

desde la firma del Tratado de Libre Comercio de América del Norte (TLCAN), la internacionalización y globalización de la economía, las nuevas tecnologías, y la velocidad de las comunicaciones, las inversiones y flujos migratorios, han modificado el modo en que los ciudadanos y las regiones se relacionan unos con otros en varios países del mundo.

• The integration of the economies of North America since the signing of the NAFTA Agreement, the globalization of the economy, new technologies and the speed of communication, investment and migration flows have changed how citizens and regions relate to each other between countries.

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Megaregions• Las iniciativas de las megaregiones son estrategias de

desarrollo económico a largo plazo, para integrar industrias y sectores para fomentar la competitividad de una región a nivel mundial.

• Por lo que la ubicación geográfica y los factores económicos dentro de las regiones juegan actualmente un papel destacado si quieren ser competitivas a nivel internacional. El conocimiento atrae mas conocimiento y aglutina a las regiones que desean captar cerebros, inversiones y generar empleos e innovación, como la región de Baja California con el Sur de California.

• Megaregions initiatives are long-term economic development strategies focused to integrate industries and sectors to promote the competitiveness of a region worldwide.

• Geographic location and economic factors within regions now play a leading role to be competitive internationally. The knowledge based economy attracts investments and generates jobs and innovation, such as the region of Baja California to Southern California ( San Diego and Imperial Counties).

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Megaregions in North America are clustered networks of cities and counties whose population ranges or is projected to range from about 7 to 63 million by the year 2025.

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Megaregiones Emergentes Emerging Megaregions

• El análisis económico y de políticas publicas son que las regiones del oeste de la Frontera México Estados Unidos, como son Baja California y California deben mirar más allá de sus límites políticos tradicionales y desarrollar nuevas estrategias para fomentar la competencia y el crecimiento económico de sus economías.

• Se ha mencionado que existen por lo menos 40 megaregiones de todo el mundo y 10 nuevas megaregiones dentro de los Estados Unidos, por lo que es importante el fomento de la megaregion oeste de la Frontera México Estados Unidos.

• The economic and public policy analysis shows us that the western regions of the United States Mexico border, such as Baja California and California must look beyond traditional political boundaries and develop new strategies to promote competition and economic growth along the regional bi national economies.

• It has been mentioned that there are at least 40 megaregions worldwide and 10 new megaregions within the United States, so it is important to promote the western megaregion loctaed in the U.S. Mexico Border.

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Crecimiento Poblacional en las megaregiones de los Estados Unidos.

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Baja California Population

Baja California presenta una de las tasas promedio de crecimiento de población más altas del país con 2.3 puntos anuales.Baja California has one of the highest average rates of population growth in the country with 2.3% annually.

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Cali Baja Megaregion• Home to over 6.5 million residents, nearly half the population of the border region,

CaliBaja has a gross regional product of more than $200 billion and accounts for over 70,000 northbound commercial and vehicular border crossings every day.

• The economic analysis indicates that Baja California and California are the border area between Mexico and the United States with more border crossings, reaching nearly 451 million vehicles and more than 260 million pedestrians, during the last 15 years.

• El análisis económico nos indica que Baja California y California son la frontera entre México y Estados Unidos con más cruces fronterizos, llegando a casi 451 millones de vehículos y más de 260 millones de peatones, en los últimos 15 años.

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Cross Border Trade FlowsAs the United States and Mexico work to expand cross-border trade flows— now

valued at over $500 billion— to enhance competitiveness in North America.

The economic integration between Mexico and the United States has increased in recent years and proof of this are the American jobs that depend on trade with Mexico. We also need to mention the Mexican economic contribution to the U.S. economy.

We observe that there are more than 1,250 million dollars in trade crossing the Mexico-US border every day, so that the United States is the largest trading partner of Mexico, and Mexico is the third largest trading partner of the United States.

La integración económica entre México y los Estados Unidos se ha incrementado en los últimos años y muestra de ello son los empleos en Estados Unidos que dependen del comercio con México al igual que la contribución económica de los mexicanos a la economía de los Estados Unidos.

Podemos mencionar que hay más de 1,250 millones de dólares en comercio que cruzan la frontera México-Estados Unidos diariamente, por lo que Estados Unidos es el socio comercial más importante de México, y México es el tercer socio comercial de Estados Unidos.

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Input Output model

• This first-ever study to develop an input-output model for the cross-border region helps to measure trade flows to and from the CaliBaja economy, and identifies the key industry clusters that have a competitive advantage in the global economy.

• The study will help to inform policy and industry decisions about investment in public infrastructure and workforce development, and to dispel outdated perceptions that do not reflect the reality of the CaliBaja region’s dynamic economy.

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Manufacturing Clusters

• Among its preliminary findings, the study shows that manufacturing is far more important to the Cali-Baja region than is commonly recognized.

• Manufacturing clusters in the crossborder region are heavily concentrated, with dozens of tightly knit industrial sectors spanning the border.

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Los clusters económicos en las megaregiones de los Estados Unidos.

Economic clusters in the United States.

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Comparative and Competitive Advantages Ventajas comparativas y competitivas

• Como nos muestra la evidencia empírica, cada región de la mega-región Baja California- Sur de California ofrece algo especial debido a sus ventajas comparativas y competitivas. Se ha mencionado que el Condado de San Diego aporta el capital humano e intelectual en forma de una fuerza laboral educada, y centros de investigación aplicada y académicos, mientras que el Condado de Imperial ofrece la tierra, el agua y el desarrollo de energías renovables y la generación.

• Por su parte, Baja California ofrece una sofisticada base de bajos costos de fabricación, la mano de obra, los nuevos desarrollos de energías renovables como la planta eólica de la Rumorosa, y universidades como la UABC y centros de investigación como el Colegio de la Frontera Norte.

• As empirical evidence shows, each part of the mega-region offers something special because of its comparative and competitive advantages. San Diego's main economic engines are military and defense-related activities, tourism, international trade, and manufacturing. It has been mentioned that the County of San Diego provides intellectual and human capital in the form of an educated workforce, applied research centers and academics, while Imperial County offers land, water and renewable energy development and generation.

• Meanwhile, Baja California offers a sophisticated base of manufacturing with low labor costs, new developments in renewable energies like the wind power plant Rumorosa and universities and research centers such as the Colegio de la Frontera Norte.

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CaliBaja String Industry Clusters

• CaliBaja manufacturing also has a leading edge in high tech production, with the region’s top three industries—semi-conductor, telecommunications, and audio-visual equipment—bringing tens of billions of dollars and over 100,000 jobs to the region.

• TOP FIVE CALIBAJA INDUSTRY CLUSTERS• (measured by total output in U.S. dollars)• 1. Semiconductor and electronic component manufacturing ($10.1 billion).• 2. Wireless telecommunications carriers ($9.9 billion).• 3. Audio and video equipment manufacturing ($9 billion).• 4. Pharmaceutical and medicine manufacturing ($5.2 billion).• 5. Medical equipment and supplies manufacturing ($4.3 billion).

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AUDIO-VISUALMANUFACTURING

• One industry that stands out in terms of industry concentration is the audio-visual manufacturing sector, which has an estimated $9 billion in total output. The 31,000+ audio-visual industry employees in the CaliBaja region account for roughly 40% of all employment in this sector in both Mexico and the United States. Such an intense concentration is rare in most industries, and illustrates that the special advantages that CaliBaja offers by combining knowledge and manufacturing capabilities across the U.S.-Mexico border to benefit companies like Sony, Samsung, Panasonic, Tyco, JVC, Sanyo, Bose, Kyocera, Plantronics, LG, and Sharp.

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CaliBaja String Industry Clusters

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Topics to Discuss

• We need to consider the following topics:

• 1.- Identification of the number of clusters.

• 2.- Size of the Clusters ( we consider that 3 digits is better than 4 digits).

• 3.- Remarks to drafting the report.

• 4.- CaliBaja’s gross regional

• Product. More than $200 billion USD.

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Baja California’s Regional Product

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San Diego and Imperial Regional Product

• San Diego is the wealthiest county on the U.S. Mexico border.

• In 2006 its GDP amounted to 159.6 billion U.S. dollars.• Imperial County GDP. • The unemployment rate in Imperial County was 27.20%

in 2012, with job growth of -1.58%.• The economy of Imperial County is dominated by the

government, agriculture, and retail trade sectors. These three industries comprised 70% of the total employment in 2000.

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Cluster Map

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• El análisis económico y de política publica nos indica que uno de los retos importantes para el éxito de la Mega región Económica y de Competitividad Binacional de Baja California y el Sur de California debe ser el mejorar la infraestructura de puertos terrestres en la frontera México Estados Unidos, ya que los elevados tiempos de cruce de la frontera equivalen a perdidas económicas y de competitividad para la mega región.

• Economic Public policy analysis indicates that one of the major economic challenges to the success of the Binational Mega region of Baja California and Southern California will be the improvement of infrastructure in the border land ports of Mexico and the United States.

• Also the economic losses of border wait times, equivalent to losing competitiveness for the mega region .

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• Finalmente, el impacto en el mercado laboral de Baja California con una tasa de desempleo de 6.42%, y la de California con tasas de desempleo por arriba del 8.9 y hasta mas de 20%, debido a la crisis económica de 2009, hace necesario nuevos esquemas para fomentar la creación de empleos y atraer las inversiones nacionales y la inversión extranjera directa (IED) en la Mega región Económica y de Competitividad Binacional de Baja California y el Sur de California.

• Finally, the labor market impact of Baja California with an unemployment rate of 6.42%, and California with unemployment rates above 8.9% and up to 20% due to the economic crisis of 2009, requires new schemes to encourage job creation and attracting domestic investment and foreign direct investment (FDI) in the Binational Megaregion of Baja California, San Diego and Imperial Counties.

• The federal government shutdown delayed the release of California’s unemployment numbers for September 2013.

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CALI BAJACALI BAJACompetitiveness STUDYCompetitiveness STUDY

Professor Alejandro Diaz-BautistaProfessor Alejandro Diaz-Bautista

[email protected]

El Colegio de la Frontera Norte (Colef) El Colegio de la Frontera Norte (Colef) Presentation Presentation

November 5, 2013.November 5, 2013.

A cross-border collaborative research effort involving the Cali-Baja Mega RegionInitiative, the Colegio de la Frontera Norte, the University of California-San Diego’s Center for U.S.-Mexican Studies, and the U.S. and Mexican Consulates of Tijuana and San Diego.

La Megaregión Económica y de Competitividad Binacional de Baja California y Sur de California.The Southern California – Baja California Competitive Mega region.