Home Arizona-Sonora region 2003 regional economic indicators

Reference URL

Rate

To link to the entire object, paste this link in email, IM or document

To embed the entire object, paste this HTML in website

To link to this page, paste this link in email, IM or document

To embed this page, paste this HTML in website

Regional economic indicators, Arizona-Sonora region

Arizona-Sonora region 2003 regional economic indicators

1 of 5

View Description

View PDF & Text

This page

All

Subset

PDF
Text

Text Search...

Regional Economic Indicators:

Arizona-Sonora Region 2003

Prepared by: Dr. Vera Pavlakovich-Kochi, Program Director and Lora Mwaniki, Research Specialist Regional Development Program

The University of Arizona Office of Economic Development Dr. Peter Likins, President Bruce A. Wright, Associate Vice President for Economic Development

Tucson, Arizona September 2003

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Acknowledgements

We acknowledge the contributions of the following organizations in providing data for this project: Arizona-Mexico Commission (AMC) Banco de Mco (Banxico) Banco de Comercio (Bancomer) Bureau of Economic Analysis (BEA) Bureau of Labor Statistics (BLS) Centro de Investigacin Alimentaci Desarrollo (CIAD) El Colegio de la Frontera Norte (Mexicali) Federal Reserve Bank of Dallas, El Paso Branch Immigration and Naturalization Service (INS) Instituto Nacional de Estadica, Geografe Informca (INEGI) Massachusetts Institute for Social and Economic Research (MISER) Secretarde Comercio y Fomento Industrial (SECOFI) Statistics Canada Subsecretarde Negociaciones Comerciales Internationales (SNCI) Texas Center for Border Economic and Enterprise Development U.S. Census Bureau U.S. Customs Service U.S. Department of Transportation (USDOT) U.S. International Trade Commission (USITC) Universidad Auta de Ciudad Juz University of Arizona Center for Applied Spatial Analysis University of Arizona Economic and Business Research Program

We thank the following individuals in the Office of Economic Development for their contribution in the production of this report (in alphabetical order): Jessica Burger, Intern David de Kok, MTLUS Program Director Marshall A. Worden, Associate Director

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Contents

Regional Economic Indicators How the indicators project came about......................................... Regional economic indicators mission statement......................... How to interpret this report........................................................... What is different in the 2003 report.............................................. The Arizona-Sonora Region Map of the Arizona-Sonora Region.............................................. What is the Arizona-Sonora Region............................................. The Arizona-Sonora Region compared to all U.S.-Mexico border states.......................................................... Arizona's rank among the four U.S. border states....................... Sonora's rank among the six Mexican border states.................... NAFTA Indicators...................................................................... Region's share of exports to NAFTA markets.............................. How Arizona and Sonora performed individually............ Region's share of U.S.-Mexico global exports............................. How Arizona and Sonora performed individually............ Region's share of U.S.-Mexico commodity flow.......................... Region's share of U.S.-Mexico electric/electronic shipments...... Region's share of U.S.-Mexico machinery shipments ................. Region's share of U.S.-Mexico plastic materials shipments ........ Region's share of fresh produce import flows from Mexico ....... Region's share of truck traffic via U.S.-Mexico BPOE................ Regional Integration Indicators................................................. Cross-border vehicle traffic........................................................... Persons crossing the border........................................................... Air passenger traffic...................................................................... Binational commissions attendance.............................................. Leading Sectors Indicators........................................................ General economic indicators Region's share of border states' gross state product (GSP).......... How Arizona and Sonora performed individually............ Arizona's share of U.S. border states' employment in foreign owned establishments (FOE)........................................ Sonora's share of Mexican border states' foreign direct investment (FDI)............................................................. 1 2 2 3

4 5 6 7 7 9 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 26 28 29 30 31

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Contents

(continued)

Leading Sectors Indicators (continued) Manufacturing/Maquiladora sector Region's share of border states' manufacturing production.............. How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico manufacturing exports.................... How Arizona and Sonora performed individually................ Sonora's share of maquiladora employment..................................... Share of technical/administrative staff in maquiladoras................... Share of national inputs in Sonora's maquiladoras.......................... Sonora's ratio of border states' maquiladora productivity................ Agribusiness sector Region's share of border states' agricultural production.................. How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico agricultural exports........................ How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico livestock exports............................ How Arizona and Sonora performed individually................ Mining sector Region's share of border states' mining production.......................... How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico mining exports............................... How Arizona and Sonora performed individually................

32 33 34 35 36 37 38 39

40 41 42 43 44 45

46 47 48 49

Transportation sector Region's share of border states' transportation services................... 50 How Arizona and Sonora performed individually................ 51 Quality of Life Indicators............................................................. Adults with a college degree............................................................ How Arizona and Sonora performed individually............... Per-capita income............................................................................ How Arizona and Sonora performed individually............... Average wage and salary income in Arizona's manufacturing........ Average wage and salary income in Sonora's maquiladoras........... Unemployment................................................................................ How Arizona and Sonora performed individually............... 53 54 55 56 57 58 59 60 61

Methodology................................................................................... 63 Data Sources................................................................................... 67

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Economic Indicators

How the indicators project came about

In 1993, the Arizona-Mexico Commission and its sister organization, the Comisionora-Arizona, initiated a binational strategic economic planning process to analyze how the two neighboring states could increase their regional competitiveness in the world economy and enhance the overall quality of life for their residents. One of the recommendations of the Strategic Economic Development Vision was to develop a set of indicators as a tool to monitor progress toward the goals of binational economic development. These goals are:

To develop Arizona and Sonora as a single region with a

competitive advantage in the global marketplace.

To facilitate the movement of goods, services, people and

information through the Region1 and to promote the establishment of a trade corridor with Arizona and Sonora as the hub.

To stimulate and encourage cross-border industry cluster

development in order to increase value-added economic activity.

To develop new external markets and new market opportunities for the Arizona-Sonora Region.

To promote linkages and eliminate barriers to development

and to promote complementarity in commerce, trade and production.

To identify and develop the economic foundations, infrastructure and services needed to reach the desired level of competitiveness in the Region.

To encourage regional economic development in accordance

with principles of sustainable development.

Source: Strategic Economic Development Vision for the Arizona-Sonora Region, 1995.

Region, when capitalized, refers to Arizona and Sonora jointly.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Economic Indicators

Regional Economic Indicators Mission

The purpose of the Regional Economic Indicators is to help policy and decision-makers understand and monitor economic changes in the Arizona-Sonora Region and to support policies that promote economic transformation, investment and entrepreneurship in the Region.

How to interpret this report

Regional Economic Indicators is an attempt to monitor developments in an emerging binational region; i.e., an area of increasing economic integration that transcends an international border. This report invites you to look at Arizona and Sonora in a new way-- as a single economic region. The emphasis is less upon how Arizona and Sonora differ--for instance, in per capita income--although measures for each state are reported. Instead, the report focuses on change: i.e., whether the levels of per capita income in both states are increasing or decreasing over time. In order to assess whether the Region made real progress, the trends are compared with changes in other U.S.-Mexico border states. Thus, the overall assessment of the Region's progress is based on whether its relative position improved within the entire U.S.-Mexico border region. Percent (%) changes in the report are based on raw data and may therefore differ from percent (%) changes calculated from the rounded-up numbers shown in the charts.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Economic Indicators

What is different in the 2003 report

As in the last Regional Economic Indicators: Arizona-Sonora Region 2002, exports are reported using data based on the North American Industry Classification System (NAICS) instead of the Standard Industrial Classification (SIC) system. Data-providing agencies such as the U.S. Census Bureau, U.S. International Trade Commission (USITC), Bureau of Economic Analysis (BEA), and INEGI regularly revise statistics. We use the latest historical data available for the construction of all indicators. This results in some numbers being slightly different from those reported in previous reports. Commodity flow is measured through all customs districts in the border states to better understand the Region's role (including Phoenix and Tucson) in the U.S.-Mexico trade. Nogales District is the only customs district in Arizona. It includes Douglas, Lukeville, Naco, Nogales, Phoenix, San Luis, Sasabe and Tucson ports-of-entry. Other U.S.-Mexico border states' customs districts include: San Diego, Los Angeles and San Fransisco in California; and Dallas/Fort Worth, Houston/Galveston, Laredo and Port Authur in Texas. In general, the 2002 data reflect a slow recovery from the region's economic downturn as a consequence of the 2000-2001 economic recession and the impacts of September 11, 2001 events.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

The Arizona-Sonora Region

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

The Arizona-Sonora Region

What is the Arizona-Sonora Region

Arizona and Sonora share a 361-mile long border between the United States and Mexico. Combined, they encompass an area of 183,460 square miles with 7,760,053 residents, or 9.5 percent of the total population living in the U.S.-Mexico border states. Building on a long tradition of cultural and economic ties, the two states engaged in a binational plan with the purpose of increasing benefits from the North American Free Trade Agreement (NAFTA) and improving the quality of life. The Region is positioned at the core of the CANAMEX trade corridor connecting southwest Canada with Mexico's Pacific coast and Mexico City. Basic Facts:

Sources: U.S. Census Bureau and INEGI, accessed 2003. Arizona 2002 population estimate from U.S. Census Bureau; Sonora 2002 population estimate from Bancomer.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

The Arizona-Sonora Region

The Arizona-Sonora Region compared to all U.S.-Mexico border states

One way of assessing the relative position of the Arizona-Sonora Region is to compare it with the entire U.S.-Mexico border region. There are four border states on the U.S. side: Arizona, California, New Mexico and Texas. The six border states on the Mexican side are Sonora, Baja California Norte, Chihuahua, Coahuila, Nuevo Lend Tamaulipas. Relative to the entire U.S.-Mexico border region, Arizona-Sonora accounts for:

9.5% of total population (2002) 6.0% of cross-border commodity flow (2002) 44.6% of cross-border fresh produce import flows from Mexico (2002) 7.0% of cross-border electric/electronic equipment shipments (2002) 4.0% of cross-border machinery shipments (2002) 6.2% of cross-border plastics shipments (2002) 7.0% of cross-border commercial truck traffic (2002) 7.1% of total gross state product (2001) 8.9% of agricultural production (2001) 7.8% of manufacturing production (2001) 6.1% of transportation services (2001) 2.1% of mining production (2001)

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

The Arizona-Sonora Region

Arizona's rank among the four U.S. border states

(1 = first place, 4 = last place)

Unemployment rate (low) (2000)............................................................. Adults with a college degree, per capita (2000)....................................... Exports to NAFTA markets, per capita (2002)........................................ Agricultural (excluding livestock) exports, per capita (2002)................. Agricultural (including livestock) GSP, per capita (2001)...................... Livestock exports, per capita (2002)....................................................... Employment in foreign-owned establishments, per capita (2000).......... Exports to global markets, per capita (2002)......................................... Manufacturing exports, per capita (2002).............................................. Per capita income (2000)........................................................................ Transportation GSP, per capita (2000)................................................... Mining exports, per capita (2002).......................................................... Mining GSP, per capita (2000)............................................................... Manufacturing GSP, per capita (2000)................................................... 1 2 2 3 3 3 3 3 3 3 3 4 4 4

Sonora's rank among the six Mexican border states

(1 = first place, 6 = last place)

Agricultural GSP, per capita (2001)........................................................ Maquiladora productivity (2002)............................................................. Mining GSP, per capita (2001)................................................................ Unemployment rate (low) (2000)............................................................ Adults with a college degree, per capita (2000)...................................... Foreign direct investment, per capita (2001)........................................... Manufacturing GSP, per capita (2001).................................................... Maquiladora employment, per capita (2002).......................................... Per capita income (2000)......................................................................... Transportation GSP, per capita (2001).................................................... 1 2 3 3 4 5 5 5 5 6

Note: Census population estimates are used to calculate the per capita measures in 2001 and 2002 for both the U.S. and Mexico.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

The NAFTA indicators measure changes in the Region's share of commodity and traffic flows and, thus, indirectly the Region's competitiveness within the NAFTA area. Two indicators measure changes in the Region's exports: Share of exports to NAFTA markets Share of U.S.-Mexico global exports The Region's performance in cross-border commodity flows compared to the U.S.-Mexico Border Region is measured by the following indicators: Share of U.S.-Mexico commodity flow Share of U.S.-Mexico electric/electronic shipments Share of U.S.-Mexico machinery shipments Share of U.S.-Mexico plastic materials shipments Share of fresh produce import flows from Mexico Share of truck traffic via U.S.-Mexico BPOE*

Supplements to NAFTA Indicators

The supplements to the NAFTA indicators give information about how Arizona and Sonora have performed individually in several areas. Arizona's and Sonora's shares of exports to NAFTA markets Arizona's and Sonora's shares of U.S.-Mexico global exports

*BPOE = Border Ports of Entry; refers to ports of entry along the U.S.-Mexico border. For other indicators in the NAFTA indicators category, all U.S. border states Ports of Entry (POE) are used. POE = Ports of Entry; includes all U.S. border states' surface ports, seaports and airports categorized by the U.S. International Trade Commission (USITC) under customs districts. The U.S. border states customs districts used in this report are: Nogales customs district in Arizona; Los Angeles, San Diego and San Francisco in California; and Dallas/Fort Worth, Houston/Galveston, Laredo and Port Arthur in Texas. New Mexico does not have any commodity flow data in the USITC database.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Basic Facts The Region exported $8.2 billion worth of merchandise to NAFTA markets in 2002, representing a 4.3 percent decrease in comparison with 1997. Arizona's exports in 2002 totaled $4.2 billion while Sonora's exports totaled $4.0 billion.

Region's share of exports to NAFTA markets

Definition: This indicator measures the change in Arizona-Sonora's share of combined exports relative to total intra-NAFTA trade--that is, all exports from one North American country to another. An increase in market share suggests an improvement in the Region's competitive position within the NAFTA markets.

Region's Trend Total intra-NAFTA trade amounted to $625.7 billion in 2002, an increase of 26.4 percent over the 1997 level. The Region's share of exports to NAFTA markets was 1.3 percent in 2002, which is lower than its 1997 share of 1.7 percent.

What the Indicator Suggests (2001-2002) The Region's share of exports to NAFTA markets fell from 1.6 to 1.3 percent between 2001 and 2002. Region's share of exports to NAFTA markets....................

1.3%

Change in Region's share........................................ -8.7% Region's relative position....................................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco, SNCI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Share of exports to NAFTA markets

How Arizona and Sonora performed individually

Arizona's and Sonora's Trends Arizona's NAFTA exports have increased 28.6 percent since 1997, compared to the 16.6 percent increase in total U.S. exports to NAFTA markets. Sonora's exports to NAFTA markets have declined 24.5 percent since 1997, while Mexico's exports to NAFTA markets have increased 51.4 percent.

Arizona's Share (2001-2002) Arizona's share of exports to NAFTA markets fell 12.1 percent between 2001 and 2002. However, Arizona's share of U.S. exports to NAFTA markets has grown from 1.5 percent in 1997 to 1.6 percent in 2002. Arizona's share of exports to NAFTA markets...................

1.6%

Change in Arizona's share...... -12.1% Arizona's relative position................................DECLINED

Sonora's Share (2001-2002) Sonora's share of exports to NAFTA markets fell 26.8 percent between 2001 and 2002. Sonora's share of NAFTA exports was 2.8 percent in 2002, compared to 5.5 percent in 1997. Sonora's share of exports to NAFTA markets...................

2.8%

Change in Sonora's share....... -26.8% Sonora's relative position..................................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco, SNCI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Basic Facts Combined global exports from Arizona and Sonora were worth $16.2 billion in 2002, a decrease of 10.4 percent from 1997. Arizona accounted for $11.9 billion of the Region's global exports, while Sonora contributed $4.3 billion.

Region's share of U.S.-Mexico global exports

Definition: Share of global exports measures changes in Arizona-Sonora's share of total exports from the U.S. and Mexico. It indirectly measures the Region's competitiveness in the global economy.

Region's Trend Combined global exports from the U.S. and Mexico totaled $853.9 billion in 2002, an increase of 7.0 percent since 1997. The Region's share of U.S.Mexico exports to the world was 1.9 percent in 2002, compared to 2.3 percent in 1997.

What the Indicator Suggests (2001-2002) From 2001 to 2002, the Region experienced a greater rate of decline in global exports than the whole of the U.S. and Mexico, decreasing its share of U.S.-Mexico global exports. Region's share of U.S.-Mexico global exports.............................

1.9%

Change in Region's share........ -9.5% Region's relative position....................................DECLINED

SOURCES: MISER (OM data), SNCI, Banco de Mco. Note: Sonora export data from 1997-2001 revised due to change in data source.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Share of U.S.-Mexico global exports

How Arizona and Sonora performed individually

Arizona's and Sonora's Trends Arizona's exports to the world have decreased 14.1 percent since 1997, compared to a 0.8 percent increase for the whole U.S. Sonora's global exports have increased 1.7 percent since 1997 while Mexico's have increased 45.5 percent.

Arizona's Share (2001-2002) Arizona's share of U.S. exports to the world did not change between 2001 and 2002. Arizona's share has fallen from 2.0 percent in 1997 to 1.7 percent in both 2001 and 2002. Arizona's share of U.S. global exports.............................

1.7%

Change in Arizona's share......... 0% Arizona's relative position....................................CONSTANT

Sonora's Share (2001-2002) From 2001 to 2002, Sonora's global exports decreased at a greater rate than Mexico as a whole. Sonora's share of Mexico's exports to the world has declined from 3.7 percent in 2001 to 2.7 percent in 2002. Sonora's share of Mexico's global exports...........................

2.7%

Change in Sonora's share....... -27.0% Sonora's relative position.................................DECLINED

SOURCES: MISER (OM data), SNCI, INEGI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Basic Facts In 2002, almost $12.6 billion worth of commodities passed to and from Mexico through the Region's ports-ofentry, a decrease of 14.6 percent since 2001, but an increase of 85.6 percent since 1993.

Region's share of U.S.-Mexico commodity flow

Definition: Share of cross-border commodity flow measures changes in the dollar value of the commodity flow through the Region's ports-of-entry (including Tucson and Phoenix) in comparison with total commodity flow through all U.S.-Mexico border states' ports-of-entry. An increase in relative share indicates an increase in the relative importance of the Region as a gateway to and from Mexico.

Region's Trend The total value of commodities passing through all U.S. border states' ports-ofentry, to and from Mexico, totaled $210.6 billion in 2002, an increase of 0.2 percent since 2001 but an increase of 185.5 percent since 1993. From 2001 to 2002, the Region experienced a relatively greater decrease in commodity flow than the average for U.S.Mexico border states.

What the Indicator Suggests (2001-2002) The Region's share remains below its 1993 level of 9.2 percent, and decreased further in the last year, from 7.0 to 6.0 percent. Region's share of U.S.-Mexico POE commodity flow...........

6.0%

Change in Region's share...................................... -14.7% Region's relative position...............................DECLINED

SOURCES: USITC.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Region's share of U.S.-Mexico electric/electronic shipments

Definition: This indicator measures the total flow of electric/electronic equipment to and from Mexico, through the Region's ports-of-entry (including Tucson and Phoenix) and compares the trend in flow through all U.S.-Mexico border states' ports-ofentry. Change in the Region's share of shipments suggests change in the Region's relative position within the NAFTA trade area.

Basic Facts In 2002, $3.7 billion in electric and electronic equipment passed through the Region's ports-of-entry, a decrease of 21.6 percent from 2001, but an increase of 186.0 percent since 1993.

Region's Trend The total value of electric/electronic equipment to and from Mexico passing through all U.S.-Mexico border states' ports-of-entry was $52.1 billion in 2002, a decrease of 4.6 percent since 2001 but an increase of 173.0 percent since 1993. The Region's share of U.S.Mexico shipments was 7.0 percent in 2002, which is above its 1993 level of 6.3 percent.

What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region experienced a greater decrease in the flow of electric/electronic equipment than the average for U.S.-Mexico border states. Region's share of U.S.-Mexico electric/electronic shipments....

7.0%

Change in Region's share....................................... -17.8% Region's relative position.................................DECLINED

SOURCE: USITC.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Basic Facts More than $1.2 billion in machinery passed through the Region's ports-ofentry in 2002, an increase of 2.7 percent from 2001, and an increase of 48.4 percent since 1993.

Region's share of U.S.-Mexico machinery shipments

Definition: This indicator measures the total flow of machinery through the Region's ports-of-entry (including Tucson and Phoenix) and compares the trend in this flow to that going through all U.S. border states' ports-of-entry.

Region's Trend The total value of machinery shipments to and from Mexico passing through all U.S.-Mexico border states' ports-ofentry totaled $30.6 billion in 2002, an increase of 3.1 percent since 2001, and an increase of 249.3 percent since 1993. The Region's share of border states' machinery shipments has fallen from 9.4 percent in 1993 to 4.0 percent in 2002.

What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region share of machinery shipments to and from Mexico has remained almost unchanged (negligible decrease). Region's share of U.S.-Mexico machinery shipments.............

4.0%

Change in Region's share........................................ 0.0% Region's relative position...............................CONSTANT

SOURCE: USITC.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Region's share of U.S.-Mexico plastic materials shipments

Definition: The shipment of plastic materials to and from Mexico through the Region's ports-of-entry (including Tucson and Phoenix) provides a measurement of the Region's share of total commodity flow though all U.S.-Mexico border states' ports-ofentry. Basic Facts In 2002, $486.7 million in plastic materials, to and from Mexico, passed through the Region's ports-of-entry, a decrease of 12.2 percent from 2001, but an increase of 102.0 percent since 1993.

Region's Trend The total value of plastics shipments passing through all U.S.-Mexico border states' ports-of-entry totaled $7.9 billion in 2002, an increase of 1.6 percent since 2001, and an increase of 220.0 percent since 1993. The Region's share of border states' plastics shipments has fallen from 9.8 percent in 1993 to 6.2 percent in 2002.

What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region experienced a greater decrease in the flow of plastic shipments than the average for U.S.-Mexico border states. Region's share of U.S.-Mexico plastic materials shipments....

6.2%

Change in Region's share....................................... -13.6% Region's relative position................................DECLINED

SOURCE: USITC.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Basic Facts In 2002, the Region's ports-of-entry handled almost $1.4 billion worth of fresh produce, grown mainly in Sinaloa and Sonora. This represents a decrease of 4.3 percent since 2001, but an increase of 80.4 percent since 1993.

Region's share of fresh produce import flows from Mexico

Definition: This indicator measures the share of Mexican fresh produce exports that pass through the Region's ports-of-entry (including Tucson and Phoenix) relative to all U.S.-Mexico border states' ports-of-entry. An increase in this indicator suggests a strengthening of the Region's relative position in NAFTA fresh produce agricultural trade.

Region's Trend The total value of Mexican fresh produce imports passing through all U.S. border states' ports-of-entry totaled almost $3.1 billion in 2002, an increase of 62.1 percent since 1993. The Region's share of fresh produce import flows from Mexico in 2002 was 44.6 percent, compared to 40.1 percent in 1993.

What the Indicator Suggests (2001-2002) From 2001 to 2002, the U.S.-Mexico border states experienced a 1.2 percent increase in fresh produce import flows from Mexico, while the Region experienced a decrease of 4.3 percent. Region's share of U.S.-Mexico fresh produce import flows.............. 44.6% Change in Region's share........................................ -5.3% Region's relative position..................................DECLINED

SOURCE: USITC.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

NAFTA Indicators

Region's share of truck traffic via U.S.-Mexico BPOE

Definition: This indicator monitors change in the Region's share of cross-border commercial truck crossings. Trucks carry more than 80 percent of all commodities traded between the U.S. and Mexico. The number of truck crossings is therefore a good indicator of the Region's border ports-of-entry to and from Mexico relative to all U.S.-Mexico border ports-of-entry.

Basic Facts In 2002, 311,907 trucks crossed the border from Sonora to Arizona, a decrease of 7.2 percent from the previous year and a decrease of 6.2 percent since 1997.

Region's Trend A total of approximately 4.4 million trucks crossed through all U.S.-Mexico border ports-of-entry in 2002, an increase of 2.8 percent since 2001, and an increase of 20.0 percent since 1997. The Region's share of U.S.-Mexico commercial truck crossings has fallen from 9.0 percent in 1997 to 7.0 in 2002, a drop of 9.7 percent from its 2001 level.

What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region experienced a larger decrease in commercial truck traffic than the U.S.-Mexico border region as whole. Region's share of U.S.-Mexico truck traffic..............................

7.0%

Change in Region's share....................................... -9.7% Region's relative position...............................DECLINED

SOURCE: USDOT.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Integration Indicators

The regional economic integration indicators measure Arizona and Sonora's progress in becoming a single economic region. Cross-border vehicle traffic Persons crossing the border Air passenger traffic Binational commissions attendance

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Cross-border vehicle traffic

Regional Integration Indicators

Definition: Vehicle traffic is one of the most straight-forward measures of the cross-border exchange of people and goods between two states. The measure used in this report includes both commercial (i.e., trucks) and noncommercial (i.e., passenger car) traffic. Although vehicle traffic is used here primarily as a measure of cross-border interaction, it also provides an indicator of infrastructure needs, by showing changes in the number of vehicles using Arizona and Sonora highways. Basic Facts In 2002, 10.8 million vehicles crossed from Sonora into Arizona, an increase of 2.9 percent from the previous year, and an increase of 14.8 percent from 1997.

Region's Trend The number of vehicles crossing the Arizona-Sonora border has consistently increased from 1997 to 2001. In 2001, the cross-border traffic decreased by 1.0 percent but increased in 2002 by 2.9 percent.

What the Indicator Suggests (2001-2002) Number of vehicles crossing the border from Sonora to Arizona................................ 2.9%

SOURCES: University of Arizona Economic and Business Research Program based on INS and U.S. Customs Service data.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Integration Indicators

Persons crossing the border

Definition: The number of persons crossing the border either in vehicles or as pedestrians reflects the intensity of economic, cultural and other interaction between Arizona and Sonora. Most of these interactions are local in nature. Residents from both sides cross the border for shopping, work, business, family visits and entertainment. Basic Facts Almost 36 million people crossed the border from Sonora to Arizona in 2002. This is an increase of 9.5 percent from 2001 and an increase of 13.5 percent since 1997.

Region's Trend The number of people crossing the Arizona-Sonora border has been on the rise from 1997 to 2000. The number dropped in 2001 by 6.7 percent compared to 2000 due to the September 11th attack. However, the number of persons crossing the border increased by 9.5 percent between 2001 and 2002.

What the Indicator Suggests (2001-2002) Number of persons crossing the border from Sonora to Arizona................................ 9.5%

SOURCES: University of Arizona Economic and Business Research Program based on INS and U.S. Customs Service data.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Integration Indicators

Air passenger traffic

Definition: This indicator is an indirect measure of interaction between the major urban areas of Arizona and Sonora. Air connections facilitate and promote business and recreational activities beyond the daily interactions typical of border communities. Basic Facts Over 77,000 people traveled by air between Sonora (Hermosillo) and Arizona (Phoenix and Tucson) in 2001. This represents an increase of 14.4 percent over the previous year, and an increase of 54.3 percent since 1997.

Region's Trend Air passenger traffic declined between 1999 and 2000 by 10.0 percent, but picked up again between 2000 and 2001 by 14.4 percent.

What the Indicator Suggests (2000-2001) Number of air passengers between Arizona and Sonora................................... 14.4%

SOURCE: USDOT.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Regional Integration Indicators

Binational commissions attendance

Definition: This indicator measures changes in the number of participants from Arizona and Sonora at joint plenary sessions of the Arizona-Mexico Commission and the Comisionora-Arizona. The sister organizations were formed in 1959 with the purpose of promoting commercial and cultural ties between Arizona and Sonora. Membership consists of representatives of government agencies, private sector organizations, institutions of higher education and the general citizenry. Since 1993 the commissions have taken a leading role in the binational strategic economic development planning process. Plenary sessions are organized twice a year, one taking place in Arizona and the other in Sonora. Although a number of factors influence participation, attendance at plenary sesions can be used as a proxy for level of interest in binational cooperation. Basic Facts The number of participants at the June 2002 plenary session was 370, a decrease of 24.5 percent compared to the June 2001 plenary session.

Region's Trend The number of participants in the binational commissions consistently increased from 1998 to 2001. However in 2002, binational commissions participation decreased below the 1998 participation level by 2.6 percent.

What the Indicator Suggests (2001-2002) Number of participants in binational commissions........ -24.5%

SOURCE: AMC.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

The leading sectors indicators monitor trends in economic activities identified as the driving forces in the Region's economy. The binational regional economic development plan supports strengthening of regional industrial clusters that transcend the border and build on complementary resources and cross-border networks. OVERALL ECONOMIC PERFORMANCE Share of border states' gross state product (GSP) MANUFACTURING/MAQUILADORA SECTOR Share of border states' manufacturing production Share of U.S.-Mexico manufacturing exports

AGRIBUSINESS SECTOR Share of border states' agricultural production Share of U.S.-Mexico agricultural exports Share of U.S.-Mexico livestock exports

MINING SECTOR Share of border states' mining production Share of U.S.-Mexico mining exports

TRANSPORTATION SECTOR Share of border states' transportation services

Supplements to Leading Sectors Indicators

The supplements to the leading sectors indicators give information about how Arizona and Sonora have performed individually in a number of areas. OVERALL ECONOMIC PERFORMANCE Arizona's and Sonora's shares of border states' gross state product (GSP) Arizona's employment in foreign-owned establishments (FOE) Sonora's share of foreign direct investment (FDI)

MANUFACTURING/MAQUILADORA SECTOR Arizona's and Sonora's shares of border states' manufacturing production Arizona's and Sonora's shares of U.S.-Mexico manufacturing exports Sonora's share of Mexico's maquiladora employment Sonora's share of technical/administrative staff in maquiladoras Share of national inputs in Sonora's maquiladoras Sonora's ratio of border states' maquiladora productivity

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Supplements to Leading Sectors Indicators

(continued)

AGRIBUSINESS SECTOR Arizona's and Sonora's shares of border states' agricultural production Arizona's and Sonora's shares of U.S.-Mexico agricultural exports Arizona's and Sonora's shares of U.S.-Mexico livestock exports

MINING SECTOR Arizona's and Sonora's shares of border states' mining production Arizona's and Sonora's shares of U.S.-Mexico mining exports

TRANSPORTATION SECTOR Arizona's and Sonora's shares of border states' transportation services

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of border states' gross state product (GSP)

Definition: This indicator evaluates the Region's overall economic performance by comparing Arizona-Sonora's combined GSP to that for the entire U.S.-Mexico border region. Basic Facts The combined GSP of Arizona and Sonora was $155.9 billion in 2001, an increase of 88.1 percent since 1993. Arizona contributed $140.4 billion to the Region's combined GSP, while Sonora contributed $15.5 billion.

Region's Trend The combined GSP for all U.S. and Mexico border states in 2001 was over $2.2 trillion, a 67.1 percent increase over the 1993 level. The Region's share of the combined U.S.-Mexico GSP has increased from 6.3 percent in 1993 to 7.1 percent in 2001.

What the Indicator Suggests (2000-2001) Between 2000 and 2001, the Region's GSP continued to grow at a faster rate than the average for the whole U.S.Mexico border region. Region's share of U.S.-Mexico border states' GSP..................

7.1%

Change in Region's share........................................ 2.9% Region's relative position...............................IMPROVED

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Share of border states' gross state product (GSP)

How Arizona and Sonora performed individually

Arizona's and Sonora's Trends Arizona's GSP has grown 91.9 percent since 1993, while the GSP for the whole U.S. border region has grown 67.0 percent. Sonora's GSP has grown 59.4 percent since 1993, while the GSP of all Mexican border states has increased 68.9 percent.

Arizona's Share (2000-2001) Arizona had slightly higher growth rate in GSP than the U.S. border region as a whole between 2000 and 2001. Since 1993, Arizona's share of U.S. border states' total GSP has risen from 5.9 percent to 6.8 percent in 2001. Arizona's share of U.S. border states' GSP....................

6.8%

Change in Arizona's share....... 1.5% Arizona's relative position....................................IMPROVED

Sonora's Share (2000-2001) Sonora had slightly higher growth rate in GSP than the Mexican border region as a whole. However, Sonora's share has fallen from 12.2 percent in 1993 to 11.5 percent in 2001. Sonora's share of Mexico border states' GSP................... Change in Sonora's share.......

11.5% 2.7%

SOURCES: BEA, INEGI.

Sonora's relative position.............................IMPROVED

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Arizona's share of U.S. border states' employment in foreign owned establishments (FOE)

Definition: Outlays by foreign-owned investors to acquire or establish businesses in Arizona reflect favorable opinions about economic conditions in the state. Arizona's share of U.S. employment in foreign-owned establishments is used as a proxy indicator for the amount of foreign investment. Basic Facts Arizona had 75,222 people employed in foreign owned establishments in 2000, an increase of 43.6 percent since 1993.

Arizona's Trend Over 1.2 million people were employed in foreign owned establishments in the four U.S. border states in 2000, an increase of 40.5 percent since 1993. Arizona's share of U.S. border states' employment in FOE was 5.9 percent in 1999, compared to 5.8 percent in 1993.

Arizona's Share (1999-2000) Between 1999 and 2000, Arizona had slower growth in employment in foreign owned establishments than the whole U.S. border region. Arizona's share of U.S. border states' employment in FOE....... Change in Arizona's share.........................................

5.9%

-4.2%

Arizona's relative position..................................DECLINED

SOURCE: BEA.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Sonora's share of Mexican border states' foreign direct investment (FDI)

Definition: Foreign direct investment is one of the most common indicators reflecting confidence of foreign investors in a country's economy. It also is an indicator of the globalization process. Basic Facts Sonora received $154.9 million in foreign direct investment in 2001, a decrease of 59.8 percent from 2000, but an increase of 44.7 percent since 1993.

Sonora's Trend Total foreign direct investment in the whole Mexico border region summed to over $3.4 billion in 2001, an increase of 64.8 percent since 1993. From 2000 to 2001, foreign direct investment in the total Mexico border region decreased by 29.5 percent as Sonora's FDI dropped dramatically.

Sonora's Share (2000-2001) Sonora's share of FDI decreased from 8.1 percent in 2000 to 4.6 percent in 2001. Sonora's share Mexican border states' FDI ...................

4.6%

Change in Sonora's share....................................... -43.2% Sonora's relative position...............................DECLINED

SOURCE: SNCI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of border states' manufacturing production

Definition: Manufacturing's contribution to GSP is used to measure manufacturing production. This indicator monitors whether the Arizona-Sonora Region is enhancing its relative position in the manufacturing sector within the U.S.-Mexico border region. Basic Facts The combined manufacturing GSP of Arizona and Sonora was $24.7 billion in 2000, an 82.2 percent increase since 1993. Arizona's manufacturing GSP totaled over $21.7 billion and Sonora's totaled over $2.9 billion.

Region's Trend The combined manufacturing GSP for all U.S. and Mexico border states in 2001 was $318.0 billion, a 46.9 percent increase over the 1993 level. The Region's share of manufacturing GSP has expanded from 6.2 percent in 1993 to 7.8 percent in 2001.

What the Indicator Suggests (2000-2001) Between 2000 and 2001, the Region's manufacturing GSP increased while the average for the whole U.S.-Mexico border region decreased. Region's share of U.S.-Mexico border states' manufacturing production.................................

7.8%

Change in Region's share........ 11.4% Region's relative position...................................IMPROVED

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Share of border states' manufacturing production

How Arizona and Sonora performed individually

Arizona's and Sonora's Trends Arizona's manufacturing GSP has grown 81.7 percent since 1993, while the GSP for the whole U.S. border region has grown 44.2 percent. Sonora's GSP has grown 85.6 percent since 1993, while the GSP of all Mexican border states has increased 76.8 percent.

Arizona's Share (2000-2001) In the past year, Arizona had a higher growth rate in manufacturing GSP than the U.S. border region as a whole. Arizona's share has increased from 6.0 percent in 1993 to 7.6 percent in 2001. Arizona's share of U.S. border states' manufacturing production.................................

7.6%

Change in Arizona's share..... 11.8% Arizona's relative position..................................IMPROVED Sonora's Share (2000-2001) Between 2000 and 2001, Sonora continued to have greater growth in manufacturing GSP than the Mexican border region. Sonora's share of manufacturing GSP has increased from 9.0 percent in 1993 to 9.5 in 2001. Sonora's share of Mexican border states' manufacturing production.................................

9.5%

Change in Sonora's share........ 4.4%

SOURCES: BEA, INEGI.

Sonora's relative position..IMPROVED

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of U.S.-Mexico manufacturing exports

Definition: Share of manufacturing exports measures whether the Arizona-Sonora Region increased its share of global exports relative to the U.S.-Mexico combined exports, an indirect indicator of changes in the Region's competitiveness. Basic Facts The Region exported $15.0 billion in manufactured products in 2002, a decrease of 13.2 percent since 1997. Arizona exported $11.3 billion in manufactured products and Sonora exported $3.7 billion.

Region's Trend Total manufacturing exports from the U.S. and Mexico totaled $765.2 billion in 2002, an increase of 7.9 percent since 1997. The Region's share has declined from 2.4 percent in 1997 to 2.0 percent in 2002.

What the Indicator Suggests (2001-2002) The Region had a lesser percentage decrease in manufacturing exports than all of U.S.-Mexico from 2001 to 2002. Region's share of U.S.-Mexico manufacturing exports..............

2.0%

Change in Region's share......................................... 0.4% Region's relative position...................................IMPROVED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

How Arizona and Sonora performed individually

Share of U.S.-Mexico manufacturing exports

Arizona's and Sonora's Trends Arizona's manufacturing exports have declined 14.7 percent since 1997 while U.S. exports have grown 1.4 percent. Since 1997, Sonora's manufacturing exports have declined 8.4 percent, while Mexico's have grown 49.8 percent.

Arizona's Share (2001-2002) Arizona's manufacturing exports fell 4.2 percent from 2001 to 2002, compared to a 5.2 percent decrease for all of the U.S. Arizona's share of U.S. manufacturing exports has fallen from 2.2 percent in 1997 to 1.8 percent in both 2001 and 2002. Arizona's share of U.S. manufacturing exports.............

1.8%

Change in Arizona's share...... 0.0% Arizona's relative position...............................CONSTANT Sonora's Share (2001-2002) From 2001 to 2002, Sonora continued its decline in manufacturing exports, and at a faster rate than all of Mexico. Sonora's share has fallen from 4.2 percent in 1997 to 2.6 percent in 2002. Sonora's share of Mexican manufacturing exports.............

2.6%

Change in Sonora's share........ - 3.3% Sonora's relative position...................................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Sonora's share of maquiladora employment

Definition: The maquiladora sector exports the majority of its products to foreign markets and attracts the majority of foreign direct investment in Mexico. Employment expansion in the maquiladora sector, therefore, reflects increased attractiveness of the Region in the global economy. Basic Facts Sonora's maquiladoras employed 76,821 people in 2002, a decrease of 22.7 percent since 2001 but an increase of 78.9 percent since 1993. Over 889,000 people were employed in maquiladoras in Mexican border states in 2002, an increase of 82.2 percent since 1993.

Sonora's Trend Sonora's maquiladora employment has grown 78.9 percent since 1993 while maquiladora employment in the Mexican border states as a whole has grown 82.2 percent in the same time period. Sonora's share has declined from 8.8 percent in 1993 to 8.6 percent in 2002.

Sonora's Share (2001-2002) From 2001 to 2002, Sonora's share of Mexican border states' maquiladora employment decreased sharply. It fell to its lowest level since 1993. Sonora's share of Mexico border states' maquiladora employment.............................

8.6%

Change in Sonora's share....... -14.0% Sonora's relative position.................................DECLINED

SOURCE: INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Share of technical/administrative staff in maquiladoras

Definition: Changes in Sonora's share of Mexican border states' technical and administrative positions reflects changes in the Region's share of skilled and administrative workers. An increase in these positions suggests a rise in skilled labor, managerial skills and transfer of technology. Basic Facts Sonora's maquiladoras employed 15,158 administrative and technical employees in 2002, a decrease of 20.9 percent since 2001 but an increase of 89.0 percent since 1993. The total for all Mexican border states in 2002 was 186,290 also a decrease of 8.8 percent since 2001.

Sonora's Trend The growth of administrative and technical positions in Sonoran maquiladoras has increased 89.0 percent since 1993, slightly slower than the growth rate for those positions in all Mexican border states, of 99.5 percent.

Sonora Share (2001-2002) Sonora's share of administrative and technical employees in Mexican border states' maquiladoras declined in the past year. Sonora's share of administrative and technical employees in maquiladoras........................

8.1%

Change in Sonora's share...... -13.3% Sonora's relative position..................................DECLINED

SOURCE: INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Share of national inputs in Sonora's maquiladoras

Definition: The majority of inputs to Mexican maquiladoras are imported from outside the country, but some come from within Mexico. When Mexican national inputs are used in maquiladoras, many of these inputs come from local sources. The share of national inputs in maquiladoras is therefore a measure of the economic integration of maquiladoras into the host state. Basic Facts Sonora's maquiladoras used $28.7 million in national inputs in 2002, a decrease of 61.6 percent since 2001, but an increase of 758.5 percent since 1993. Over $1.2 billion in national inputs were consumed in maquiladoras in all Mexican border states in 2002, an increase of 22.4 percent since 2001.

Sonora's Trend The value of national inputs in Sonora's maquiladoras has grown 758.5 percent since 1993 while the value of national inputs in maquiladoras in Mexican border states as a whole has grown 456.2 percent in the same time period. Sonora's National Input share has expanded from 1.5 percent in 1993 to 2.3 percent in 2002.

Share in Sonora (2001-2002) Sonora's share of national inputs dropped dramatically from 7.5 in 2001 to 2.3 in 2002. Share of national inputs in Sonora's maquiladoras..............

2.3%

Change in Sonora's share........ -68.6% Sonora's relative position.................................DECLINED

SOURCE: INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Sonora's ratio of border states' maquiladora productivity

Definition: According to INEGI, productivity in the maquiladora industry is measured in terms of value added per employee. Sonora's productivity rates are compared with the average productivity in Mexico's border states. Increases in productivity indicates improvement in regional competitiveness for business investment. Basic Facts Sonora's maquiladora productivity averaged $13,757 per employee in 2002, an increase of 9.8 percent since 2001 and an increase of 54.2 percent since 1993. Average productivity for all Mexican border states was $16,709 per employee last year, an increase of 8.3 percent since 2001 and an increase of 64.5 percent since 1993.

Sonora's Trend Sonora's productivity lags behind the average productivity for all Mexican border states, increasing 54.2 percent since 1993, compared to an average increase of 64.5 percent for all Mexican border states.

Sonora's Ratio (2001-2002) Productivity in Sonora's maquiladoras increased at a greater rate than for the whole Mexican border region between 2001 and 2002. Sonora's ratio of Mexico border states' productivity.............................. Change in Sonora's ratio.........

82.3%

1.4%

SOURCE: INEGI.

Sonora's relative position..................................IMPROVED

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of border states' agricultural production

Definition: Agricultural contribution to GSP is used as a measure of agricultural production. This indicator measures changes in the Region's agricultural production relative to the whole U.S.-Mexico border region. An increased share suggests that the Region has enhanced its relative position among the U.S.-Mexico border states. Basic Facts The Region's agricultural GSP totaled $3.8 billion in 2001, an increase of 26.7 percent since 1993. Arizona's agricultural GSP was over $2.6 billion while Sonora's was $1.2 billion.

Region's Trend The agricultural GSP of all U.S.Mexico border states totaled $42.2 billion in 2001, an increase of 27.4 percent since 1993. The Region's share of 8.9 percent in 2001 is slightly below its 1993 share of 9.0 percent.

What the Indicator Suggests (2000-2001) The Region had a greater percentage growth in agricultural GSP between 2000 and 2001 than the whole U.S.Mexico border region. Region's share of U.S.-Mexico border states' agricultural production.................................

8.9%

Change in Region's share........ 11.3% Region's relative position...............................IMPROVED

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

How Arizona and Sonora performed individually

Share of border states' agricultural production

Arizona's and Sonora's Trends Arizona's agricultural GSP has increased 61.2 percent since 1993, while the U.S. border region as a whole has seen an increase of 33.2 percent. Sonora's agricultural GSP has shrunk 14.5 percent since 1993, while the Mexico border region's agricultural GSP has shrunk only 8.0 percent.

Arizona's Share (2000-2001) Arizona had a larger rate of growth in agricultural GSP between 2000 and 2001 than the U.S. border region, with Arizona's share growing from 5.7 percent in 1993 to 6.9 percent in 2001. Arizona's share of U.S. border states' agricultural production.................................

6.9%

Change in Arizona's share........ 9.5% Arizona's relative position.....................................IMPROVED Sonora's Share (2000-2001) Both Sonora and the entire Mexico border region increased their agricultural GSP between 2000 and 2001, but Sonora increased at a greater rate. Still Sonora's share has fallen from 29.2 percent in 1993 to 27.1 percent in 2001. Sonora's share of Mexican border states' agricultural production................................. Change in Sonora's share........

SOURCES: BEA, INEGI.

27.1%

12.4%

Sonora's relative position..IMPROVED

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of U.S.-Mexico agricultural exports

Definition: Agricultural exports include crops grown for food or fiber. Trends in exports of agricultural products to world markets indicate the globalization of the Region's agricultural production. An increase in the Arizona-Sonora Region's share of U.S.-Mexico global agricultural exports suggests an increase in the competitiveness of the Region's agricultural sector. Basic Facts The Region exported $731.1 million in agricultural products in 2002, an increase of 11.9 percent since 1997. Arizona exported $349.1 million and Sonora exported $382.0 million.

Region's Trend The combined agricultural exports of the U.S. and Mexico totaled $29.0 billion in 2002, a decrease of 10.9 percent since 1997. The Region's share in 2002 was 2.5 percent, which is higher than its 1997 level of 2.0 percent.

What the Indicator Suggests (2001-2002) From 2001 to 2002, the Region's share of combined U.S.-Mexico agricultural exports decreased. Region's share of U.S.-Mexico agricultural exports.................

2.5%

Change in Region's share...... -15.7% Region's relative position...................................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

How Arizona and Sonora performed individually

Share of U.S.-Mexico agricultural exports

Arizona's and Sonora's Trends Arizona's agricultural exports have decreased 1.2 percent since 1997 while U.S. agricultural exports have declined 11.7 percent. Sonora's agricultural exports have increased 27.3 percent since 1997 while Mexico's have decreased 4.4 percent.

Arizona's Share (2001-2002) Arizona's share of U.S agricultural exports decreased from 1.6 in 2001 to 1.4 percent in 2002. Arizona's 2002 agricultural exports share is still above the 1997 share of 1.2 percent.

Arizona's share of U.S. agricultural exports..................

1.4%

Change in Arizona's share..... -14.2% Arizona's relative position...............................DECLINED Sonora's Share (2001-2002) Sonora's share of Mexican agricultural exports decreased between 2001 and 2002. Sonora's 2002 share of 11.7 percent was above its 1997 share of 8.8 percent.

Sonora's share of Mexican agricultural exports...................

11.7%

Change in Sonora's share........ -13.2% Sonora's relative position..DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of U.S.-Mexico livestock exports

Definition: Cattle production is one of the areas with great opportunities for cross-border cooperation between Arizona and Sonora agribusiness. An increase in the Region's share of livestock exports indicates an increase in the competitiveness of the Region's industry. Basic Facts The Region exported $214.3 million in livestock in 2002, an increase of 11.1 percent since 1997. Sonora accounted for the majority of the Region's exports, with $206.0 million, while Arizona's exports totaled $8.3 million.

Region's Trend Combined U.S.-Mexico livestock exports totaled $1.6 billion in 2002, a 4.4 percent increase since 1997. The Region has expanded its share from 12.3 percent in 1997 to 13.1 percent in 2002.

What the Indicator Suggests (2001-2002) The Region had a greater rate of growth in livestock exports between 2001 and 2002 than all of U.S. and Mexico. Region's share of U.S.-Mexico livestock exports.......................

13.1%

Change in Region's share........ 8.2% Region's relative position...................................IMPROVED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Share of U.S.-Mexico livestock exports

How Arizona and Sonora performed individually

Arizona's and Sonora's Trends Arizona's livestock exports are 65.5 percent lower in 2002 than in 1997, while U.S. livestock exports have decreased by 10.3 percent. Sonora's livestock exports have increased 21.9 percent since 1997 while Mexico's have increased 44.5 percent.

Arizona's Share (2001-2002) Arizona had a decrease in livestock exports between 2001 and 2002 while the entire U.S. increased. Arizona's share in 2002 was 0.8 percent, compared to 2.1 percent in 1997. Arizona's share of U.S. livestock exports......................

0.8%

Change in Arizona's share..... -40.6% Arizona's relative position....................................DECLINED

Sonora's Share (2001-2002) Sonora had slower growth in livestock exports than all of Mexico for 2001 to 2002. Sonora's 2002 share of 34.0 percent is still lower than its 1997 share of 40.3 percent. Sonora's share of Mexican livestock exports.....................

34.0%

Change in Sonora's share...... -7.6% Sonora's relative position...................................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Region's share of border states' mining production

Leading Sectors Indicators

Definition: Mining contribution to GSP is used as a measure of mining production. The Arizona-Sonora Region's share of mining production, relative to all border states, provides a measure of the Region's changing position within the entire U.S.Mexico border region. Basic Facts The Region's mining GSP totaled almost $1.3 billion in 2001, an increase from the 1993 amount by 13.4 percent. Arizona contributed $1.2 billion to the Region's mining GSP while Sonora contributed $158 million.

Region's Trend The combined mining GSP for all U.S. and Mexico border states totaled $64 billion in 2001, an increase of 48.4 percent since 1993. The Region's share of 2.1 percent in 2001 is lower than its 1993 share of 2.8 percent.

What the Indicator Suggests (2000-2001) The Region declined in mining GSP between 2000 and 2001, while the whole U.S.-Mexico border region increased.

Region's share of U.S.-Mexico border states' mining production..........................

2.1%

Change in Region's share...... -7.7% Region's relative position...DECLINED

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

How Arizona and Sonora performed individually

Share of border states' mining production

Arizona's and Sonora's Trends While the mining GSP in the U.S. border region as a whole has increased by 49.0 percent since 1993, Arizona's mining GSP has increased by only 13.4 percent. Sonora has decreased its mining GSP 12.7 percent from the 1993 level, while the total mining GSP for Mexican border states has increased by 19.6 percent.

Arizona's Share (2000-2001) While Arizona declined in mining GSP between 2000 and 2001, the U.S. border region increased. Arizona's 2001 share of 1.9 percent is below its 1993 share of 2.5 percent. Arizona's share of U.S. border states' mining production.........

1.9%

Change in Arizona's share........ -5.0% Arizona's relative position..DECLINED

Sonora's Share (2000-2001) Sonora had a 25.3 percent decline in mining GSP between 2000 and 2001. Its 2000 share of 14.3 percent is below the 1993 level of 19.6 percent. Sonora's share of Mexican border states' mining production....... 14.3% Change in Sonora's share....... -28.5% Sonora's relative position...............................DECLINED

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Region's share of U.S.-Mexico mining exports

Definition: The mining exports indicator monitors changes in the Arizona-Sonora Region's relative position among U.S.-Mexico border states. An increase in the Region's share suggests that the Region's competitiveness in this traditional yet increasingly globalized economic activity increased. Basic Facts The Region's mining exports totaled $393.4 million in 2002, a decrease of 22.4 percent since 1997. Sonora accounted for $372.0 million of the Region's exports, while Arizona accounted for $21.4 million.

Region's Trend The combined mining exports of the U.S. and Mexico equaled $19.1 billion in 2002, an increase of 3.1 percent since 1997. The Region's share in 2002 was 2.1 percent, compared to 2.7 percent in 1997.

What the Indicator Suggests (2001-2002) Between 2001 and 2002, the Region's mining exports grew at a slower rate than mining exports for all of the U.S. and Mexico. Region's share of U.S.-Mexico mining exports.....................

2.1%

Change in Region's share..................................... -37.8% Region's relative position.................................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

How Arizona and Sonora performed individually

Arizona's and Sonora's Trends Since 1997, Arizona's mining exports have decreased 58.0 percent, compared to a 27.0 percent decrease for all of the U.S. Sonora's mining exports have decreased 18.4 percent since 1997 while Mexico's have increased 24.6 percent.

Share of U.S.-Mexico mining exports

Arizona's Share (2001-2002) Arizona's mining exports declined by 38.5 percent between 2001 and 2002, in contrast to a 1.1 percent increase in mining exports for the U.S. as a whole. Arizona's share was 0.4 percent in 2002 compared to 0.7 percent in 1997. Arizona's share of U.S. mining exports........................

0.4%

Change in Arizona's share..... -39.1% Arizona's relative position...............................DECLINED Sonora's Share (2001-2002) Sonora experienced a 32.1 percent decrease in mining exports between 2001 and 2002, compared to a 12.1 percent increase for all of Mexico. Sonora's share was 4.2 percent in 1997 and 2.8 percent in 2002. Sonora's share of Mexican mining exports........................

2.8%

Change in Sonora's share...... -39.4% Sonora's relative position...............................DECLINED

SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Region's share of border states' transportation services

Leading Sectors Indicators

Basic Facts The Region's transportation GSP totaled almost $9.5 billion in 2001, an increase of 74.9 percent since 1993. Arizona contributed $7.9 billion to the Region's transportation GSP while Sonora contributed $1.6 billion.

Definition: Transportation contribution to GSP is used as a measure of transportation services. This indicator is used to monitor the strength of the regional transportation sector relative to the entire U.S.-Mexico border region.

Region's Trend The combined transportation GSP of all U.S. and Mexico border states totaled $155.1 billion, an increase of 73.5 percent since 1993. The Region's share was 6.1 percent in 1993 and is the same in 2001.

What the Indicator Suggests (2000-2001) Between 2000 and 2001, the Region had faster growth in transportation GSP than the entire U.S.-Mexico border region. Region's share of U.S.-Mexico border states' transportation services......................................

6.1%

Change in Region's share.........0.0% Region's relative position....................................CONSTANT

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

How Arizona and Sonora performed individually

Share of border states' transportation services

Arizona's and Sonora's Trends Arizona's transportation GSP has increased 71.6 percent since 1993, compared to 70.4 percent for the total U.S. border region. Sonora's transportation GSP has increased 93.0 percent since 1993 while the whole Mexico border region has increased its transportation GSP by 108.0 percent.

Arizona's Share (2000-2001) Arizona experienced slightly faster growth in transportation GSP than the U.S. border region. Arizona's share was 5.7 percent in 2001 and 5.6 percent in 1993. Arizona's share of U.S. border states' transportation services.......................................

5.7%

Change in Arizona's share......... 0.0% Arizona's relative position....................................CONSTANT Sonora's Share (2000-2001) Sonora experienced faster growth in transportation GSP than the total Mexico border region. Sonora's share had fallen from 11.1 percent in 1993 to 9.8 percent in 2000 but increased to 10.3 in 2001. Sonora's share of Mexican border states' transportation services...................................... 10.3% Change in Sonora's share.......... 5.1% Sonora's relative position................................IMPROVED

SOURCES: BEA, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Quality of Life Indicators

The quality of life indicators measure changes in the region's position within the entire U.S.-Mexico border region based on the following indicators: Adults with a college degree Per capita income Unemployment

Supplements to Quality of Life Indicators

Arizona's and Sonora's adults with a college degree Arizona's and Sonora's per capita income Average manufacturing wage and salary income in Arizona Average wage and salary income in Sonora's maquiladoras Arizona's and Sonora's unemployment

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Adults with a college degree

Quality of Life Indicators

Basic Facts The Region scored a grade of 62.5 percent with respect to percentage of adults with a college degree in 2000. This represents a 66.7 percent increase in rank since 1995.

Definition: A college degree or the equivalent education is required for the majority of jobs in the new economy. This indicator monitors change in the relative position of the Arizona-Sonora region within the entire U.S.-Mexico border region in terms of educational attainment. Progress suggests that the Region is building a stronger foundation for the new economy than other U.S.Mexico border states.

What the Indicator Suggests Region's percent grade score in adults with a college degree....................... 62.5% Change in Region's grade....................................... 66.7% Region's relative position............................IMPROVED

SOURCES: U.S. Census Bureau, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Adults with a college degree

Quality of Life Indicators

Arizona's and Sonora's Trends With 24.6 percent of the adult population (25 years and older) holding a college degree, Arizona's percentage of adults with a college degree has increased since 1995. From 1990 to 2000, Sonora has increased its percentage of population (15 years and older) holding a college degree from 8.7 percent to 12.2 percent.

How Arizona and Sonora performed individually

Arizona's Rank Arizona ranked second best among the four U.S. border states in 2000, an increase in ranking since 1995. Arizona's grade score in adults with a college degree..................... 75.0% Change in Arizona's grade..................................... 200.0% Arizona's relative position..............................IMPROVED

Sonora's Rank Sonora ranked fourth out of six Mexican border states in 2000, the same rank it held in 1995. Sonora's grade score in adults with a college degree..................... 50.0% Change in Sonora's grade...................................... 0.0% Sonora's relative position..............................CONSTANT

SOURCES: U.S. Census Bureau, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

GSP Per capita income

Quality of Life Indicators

Basic Facts The Region maintained its rank and grade score of 41.7 percent in 2001. Although this score has remained constant over the last seven years, it still represents an improvement of 42.9 percent since 1993.

Definition: Per-capita income is one of the most commonly used indicators of the economic dimension of quality of life. This indicator measures the Region's relative position in comparison to all 10 U.S.-Mexico border states, expressed as a percent.

What the Indicator Suggests The Region's percent grade score in GSP per capita income............ 41.7% Change in Region's grade....................................... 0.0% Region's relative position...............................CONSTANT

SOURCE: UAOED estimate.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Per capita income How Arizona and Sonora performed individually

Quality of Life Indicators

Arizona's and Sonora's Trends In 2001, Arizona's per capita income was $26,453, an increase of 44.4 percent from the 1993 level. Sonora's per capita income was $6,803 in 2001, which is 39.0 percent higher than the 1993 level.

Arizona's Rank Arizona maintained it's rank of third among the four U.S. border states in terms of per capita income in 2001. Arizona's percent grade score in per capita income.................... 50.0% Change in Arizona's grade........................................ 0.0% Arizona's relative position...............................CONSTANT

Sonora's Rank Sonora maintained its ranking of fifth among the six Mexican border states. Sonora's percent grade score in per capita income................... 33.3% Change in Sonora's grade.......................................

0.0%

Sonora's relative position..............................CONSTANT

SOURCE: UAOED estimate.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Average manufacturing wage and salary income in Arizona

Definition: The average wage and salary income in Arizona's manufacturing industries is a measure of how much money is paid to employees and managers in all manufacturing industries in the state. Limitations in data availability prevent us from separating wages and salaries, but nevertheless this indicator measures trends over time in the average compensation of manufacturing occupations in Arizona. Basic Facts The average annual wage and salary income in Arizona's manufacturing industries was $47,990 in 2001, a decrease of 1.0 percent since 2000. The average annual wages and salaries of all U.S. border states was $45,787 in 2001, a decrease of 2.1 percent since 2000.

Leading Sectors Indicators

Arizona's Trend The average annual manufacturing wage and salary income in Arizona has increased 45.6 percent since 1993. The average for all U.S. border states has increased 43.4 percent in the same time period.

Arizona's Ratio (2000-2001) The ratio of Arizona's average annual wage and salary income to U.S. border states' wages and salaries changed by 1.1 percent from 2000 to 2001. Ratio of Arizona's average to U.S. border states' average..... Change in Arizona's ratio........

104.8%

1.1%

Arizona's relative position...................................IMPROVED

SOURCE: BEA.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Leading Sectors Indicators

Average wage and salary income in Sonora's maquiladoras

Definition: The average wage and salary income in Sonora's maquiladoras is a measure of how much money is paid to employees and managers in all maquiladoras in the state. Limitations in data availability prevent us from separating wages and salaries, but nevertheless this indicator measures trends over time in the average compensation of maquiladora occupations in Sonora. Basic Facts The average annual wage and salary income in Sonora's maquiladoras was $5,220 in 2001, an increase of 14.2 percent since 2000. The average annual maquiladora wages and salaries in all Mexican border states was $5,612 in 2001, an increase of 18.8 percent since 2000.

Sonora's Trend The average annual wage and salary income in Sonora's maquiladoras has increased 32.9 percent since 1993. The average for all Mexican border states has increased 44.6 percent in the same time period.

Sonora's Ratio (2000-2001) The ratio of Sonora's average annual wage and salary income to Mexican border states' wages and salaries decreased from 2000 to 2001. Ratio of Sonora's average to Mexican border states' average...................................... 93.0% Change in Sonora's ratio..........

3.9%

Sonora's relative position..................................DECLINED

SOURCE: INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Unemployment

Quality of Life Indicators

Definition: Unemployment rate monitors the percentage of the civilian labor force defined in respective government statistics as unemployed. Although definitions differ between the U.S. and Mexico, a relative ranking allows comparison of Arizona and Sonora with the average for their respective border regions. Basic Facts The Region scored 91.7 points out of 100 with respect to unemployment rate in 2000, indicating a relatively high ranking (i.e., a relatively low unemployment rate). However, this ranking represents a decline of 9.1 percent since 1995 (i.e., in 2000 the Region had a higher unemployment rate relative to other U.S.-Mexico border states).

What the Indicator Suggests Region's unemployment score........................................

83.3%

Change in Region's rank......................................... -9.1% Region's relative position...............................DECLINED

SOURCES: BLS, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Unemployment

Quality of Life Indicators

Arizona's and Sonora's Trends Arizona continued to have the lowest unemployment rate among the four U.S. border states, 3.9 percent compared to an average of 4.4 percent for all U.S. border states in 2000. Compared to all Mexican border states, Sonora shared (with Nuevo Leon) the third lowest unemployment rate among the six Mexican border states, 1.2 percent.

How Arizona and Sonora performed individually

Arizona's Rank (1995-2000) Among all U.S. border states, Arizona retained the lowest unemployment rate in 2000 (and therefore the highest score). Arizona's unemployment score.......................................

100.0%

Change in Arizona's rank........................................ 0.0% Arizona's relative position..............................CONSTANT Sonora's Rank (1995-2000) Sonora shared the rank of third best among the six Mexican border states in 2000, which is a decline in rank from 1995, when Sonora ranked second best. Sonora's unemployment score......................................

66.7%

Change in Sonora's rank....................................... -20.0% Sonora's relative position...............................DECLINED

SOURCES: BLS, INEGI.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Methodology

Selection of indicators

The Regional Indicators were developed following a series of binational meetings involving research institutions in Arizona and Sonora as well as members of the Arizona-Mexico Commission and ComisionoraArizona, representing public and private sectors in both states. Sixty-seven indicators originally were proposed in 1998. A comprehensive list of indicators with detailed definitions, rationales, computational procedures and data sources (existing and proposed) can be found in Indicators of Progress, published by the University of Arizona Office of Economic Development (December 1998) and also available on the Internet (http://oed.arizona.edu/). The first edition of Indicators of Economic Progress (2000) presented 32 indicators as a compromise between the proposed indicators and indicators for which measurable data were actually available, i.e., comparable data for both Arizona and Sonora and for each of the remaining U.S. and Mexican border states. The current (2003) edition basically follows the previous format and presents a total of 33 indicators. In cases where state-level data were unavailable for all Mexican border states (such as exports by sector), the Arizona-Sonora Region was compared to the whole U.S.-Mexico area, instead of the U.S.-Mexico border region.

Measuring a transboundary region

A major challenge posed by the indicators project has been the operationalization and measurement of indicators representing Arizona and Sonora--two very different economies, with different data collection systems--as a single economic region. This was resolved partially by placing emphasis on the Region's relative position in comparison with the whole U.S.-Mexico border region. When data were directly comparable, such as dollar value of exports and gross state product, Arizona's and Sonora's values were summed and compared to the whole U.S.-Mexico border region (the sum of values for all U.S. and Mexican border states). The evaluation of progress was based on whether the Region's relative share of the whole U.S.Mexico border region increased or decreased. In cases where direct summation was inappropriate due to different population bases, such as income per capita and educational attainment of the adult population, a regional indicator was obtained through the following procedure: (1) Arizona and Sonora were ranked among their respective number of border states, i.e., Arizona on a scale from 1 to 4 and Sonora on a scale 1 to 6 (with a rank of 1 being best); (2) the individual ranks were converted to a scale of 1 to 100 to make them comparable (with a grade of 100 percent being best), i.e., for example, Arizona's second place (2 out of 4) would equal 75.0 percent and Sonora's second place (2 out of 6) would equal 83.3 percent, and (3) the Region's grade was computed as an average of Arizona and Sonora's weighted grade scores (sum of Arizona and Sonora's weighted grades divided by two). Although the Region's average grade score in any one year provides limited information, comparison over time provides a measure of relative improvement within the whole U.S.-Mexico border region.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Methodology

Calculation and representation of indicators

Three basic methods are used to present indicators in this report: raw data, simple index numbers and percentage shares.

Raw-data method

The raw-data method is used to show actual volume for the indicator. For example, indicators such as exports and gross state product are shown in dollars. Other indicators, such as truck or air passenger traffic, are shown in corresponding units of measurement, i.e., number of trucks or number of passengers respectively. Raw data are presented graphically by bar charts, where the height of a bar is proportional to the actual volume. Because all bars have a common base "0," a visual comparison of their heights provides a general impression of change over time. Most data are collected on an annual basis. Whenever available, we have shown data starting with year 1993, the pre-NAFTA year, and ending with the most current year (2002 in most cases). Several indicators in the Quality of Life section are available only at 5-year intervals.

Simple-index-number method

Index numbers are commonly used to show variation from an arbitrary standard representing the status at some earlier time, denoted as 100. In other words, an index number is a percentage change over the base year, where the base year represents 100 percent. An index number is obtained arithmetically by dividing a quantity in a given year, |Quantityn|, by the quantity in the base year, |Quantity0| and multiplying the result by 100, i.e.: Quantityn Simple index number = Quantity0 According to the formula in (1), if the current year value is the same as in the base year, the resulting index number will be 100. For example, if the current year's exports are the same as in the base year, the index value will be 100. An index number greater than 100 indicates that exports have increased compared to the base year, while an index value less than 100 means that exports have declined. Index numbers can be computed using a specific year as a constant base, or using the preceding year as a changing base year (or any other time unit). In this report, we selected the pre-NAFTA year of 1993 as a constant year whenever data permitted. x 100 (1)

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Methodology

Because index numbers are relative numbers, they are independent of measurement units and thus especially appropriate for comparison of variables that have large differences in quantities. As an illustration, consider NAFTA exports. Index numbers allow us to compare changes in the export activity of the Arizona-Sonora Region, ranging between $8.6 billion (1997) and $9.7 billion (2001), with total NAFTA trade ranging between $494.9 billion (1997) and $636.9 billion (2001). Index numbers also are useful in situations where data collection methodologies or definitions in two geographic areas are not exactly the same. For example, unemployment is defined differently in Arizona and Sonora. The two sets of index numbers (one for each state, with the same base year = 100) allow us to compare unemployment trends in Arizona and Sonora irrespective of nuances in definition. An advantage of the simple-index-number method is the graphical application. The base year is always represented with a line having the value 100, and the trend is visually evaluated in reference to that line. This is especially beneficial when comparing trends in two different geographical units or for two different variables (indicators). We have used graphical presentation of index numbers to compare trends between the Arizona-Sonora Region and the whole U.S.-Mexico border region, the Arizona-Sonora Region and the whole U.S.-Mexico area as well as Arizona and Sonora. Simple index numbers easily can be converted into percentages using the expression: Percentage change (%)n/0 = index numbern/0 100 (2)

For example, an index number of 118.5 means 18.5 percent change has occurred (compared to the base year), where n is the current year and 0 is the base year. We have utilized this property in the text that accompanies the graphs simply because readers may be more familiar with percentages.

Percentage-share method

Percentages are numbers that show relative proportions of a whole, i.e.: Quantityi Percentage share (%) = QuantitySi Where i represents one component, such as Arizona's exports, and Si represents total exports, i.e., the sum of exported products from the whole U.S. border region. We have used the percentage-share method to measure relative importance of the Arizona-Sonora Region within the whole U.S.-Mexico border region. When comparable data were not available for other border states, the Region's relative position was expressed in terms of percentage share of the whole U.S.-Mexico area. x 100 (3)

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Data Sources

NAFTA Indicators

SHARE OF EXPORTS TO NAFTA MARKETS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed February 2003. Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. Mexico data: Secretaria de Economia, Subsecretaria de Negociaciones Comerciales Internationales, based on BANXICO data. Canadian data: Statistics Canada at http://strategis.ic.gc.ca/ accessed June 2003. SHARE OF U.S.-MEXICO WORLD EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed February 2003. Mexico and Sonora data: Secretaria de Economia, Subsecretaria de Negociaciones Comerciales Internationales, based on BANXICO data. SHARE OF U.S.-MEXICO COMMODITY FLOWS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF ELECTRIC/ELECTRONIC SHIPMENTS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF MACHINERY SHIPMENTS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF PLASTIC MATERIALS SHIPMENTS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF FRESH PRODUCE IMPORT FLOWS FROM MEXICO VIA U.S.-MEXICO BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF TRUCK TRAFFIC VIA U.S.-MEXICO BPOE U.S. Department of Transportation, based on U.S. Customs Service data.

Regional Integration Indicators

CROSS-BORDER VEHICLE TRAFFIC University of Arizona Economic and Business Research Program, based on INS and U.S. Customs Service data. PERSONS CROSSING THE BORDER University of Arizona Economic and Business Research Program, based on INS and U.S. Customs Service data. AIR PASSENGER TRAFFIC U.S. Department of Transportation International Aviation Developments Series at http://ostpxweb.ost.dot.gov/aviation/international-series/, accessed June 2003. BINATIONAL COMMISSIONS ATTENDANCE Arizona-Mexico Commission/Comision Sonora-Arizona Attendance Records, binational plenary sessions, December 1998, June 1999, June 2000, and June 2001.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Data Sources

Leading Sectors Indicators

SHARE OF BORDER STATES' GROSS STATE PRODUCT (GSP) U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed June 2003. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gov.mx/BDINE/H10/H100043.HTM accessed May 2003. ARIZONA EMPLOYMENT IN FOREIGN-OWNED ESTABLISHMENTS Bureau of Economic Analysis, Survey of Current Business, June 1998, August 2000, August 2001, and August 2002 issues. SONORA'S SHARE OF FOREIGN DIRECT INVESTMENT (FDI) Subsecretaria de Negociaciones Comerciales Internationales (SNCI), at http://www.economica-snci.gov.mx/Inversi_n/ Estad_sticas_inv/estad_sticas_inv.htm accessed June 2003. SHARE OF BORDER STATES' MANUFACTURING PRODUCTION U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed May 2003. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/BDINE/BANCOS.HTM accessed May 2003. SHARE OF U.S.-MEXICO MANUFACTURING EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed June 2003. Sonora 1993-1997 data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. Sonora 1998-2002 data: Mexico data: Subsecretaria de Negociaciones Comerciales Internationales (SNCI) based on BANXICO data. Mexico data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE) http:// dgcnesyp.inegi.gob.mx/BDINE/J10/J100020.HTM accessed June 2003. SHARE OF MEXICO'S MAQUILADORA EMPLOYMENT Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), Industria Maquiladora de Exportacion, http://dgcnesyp.inegi.gob.mx/BDINE/J15/J150249.HTM accessed June 2003. Note: Annual figures are the average of 12 monthly figures. SHARE OF TECHNICAL/ADMINISTRATIVE STAFF IN MAQUILADORAS Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), Industria Maquiladora de Exportacion, http://dgcnesyp.inegi.gob.mx/BDINE/J15/J150456.HTM accessed June 2003. Note: Annual figures are the average of 12 monthly figures. SHARE OF NATIONAL INPUTS IN SONORA'S MAQUILADORAS Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), Industria Maquiladora de Exportacion, http://dgcnesyp.inegi.gob.mx/BDINE/J15/J15.HTM accessed June 2003. Note: Annual figures are the average of 12 monthly figures. PRODUCTIVITY IN THE MAQUILADORA SECTOR Instituto Nacional de Estadica, Geografe Informca (INEGI), Valor Aggregado de Exportacion, at http:// dgcnesyp.inegi.gob.mx/BDINE/J15/J150099.HTM, accessed June 2003. Productivity is calculated by dividing Valor Aggregado by the total number of employees in maquiladoras in each state.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Data Sources

Leading Sectors Indicators

(continued)

SHARE OF BORDER STATES' AGRICULTURAL PRODUCTION U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed June 2003. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/cgi-win/bdi.exe accessed May 2003. SHARE OF U.S.-MEXICO AGRICULTURAL EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed April 2002. Mexico and Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. SHARE OF U.S.-MEXICO LIVESTOCK EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed April 2002. Mexico and Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. SHARE OF BORDER STATES' MINING PRODUCTION U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed March 2002. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/pubcoy/estatal/pib/pibcor.html, accessed March 2002. SHARE OF U.S.-MEXICO MINING EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed April 2002. Mexico and Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. TRANSPORTATION SHARE OF GSP U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed March 2002. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/pubcoy/estatal/pib/pibcor.html, accessed March 2002.

Quality of Life Indicators

ADULTS WITH A COLLEGE DEGREE U.S. and Arizona data: U.S. Census Bureau, Current Population Surveys, Table 13, at http://www.census.gov/population/www/ socdemo/educ-attn.html, accessed 26 April 2001. Mexico and Sonora data: Perfil sociodemografico (INEGI, 1995) for each border state, and XII Censo General de Poblacion y Vivienda 2000 (INEGI, 2000).

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Data Sources

Quality of Life Indicators

(continued)

PER CAPITA INCOME UAOED estimate computed by dividing total state GSP by total state population (see sources for GSP and population for more information). AVERAGE MANUFACTURING WAGE AND SALARY INCOME IN ARIZONA Bureau of Economic Analysis (BEA), Annual State Personal Income, http://www.bea.gov/bea/regional/spi/, accessed June 2003. AVERAGE WAGES AND SALARY INCOME IN SONORA'S MAQUILADORAS Secretarde Comercio y Fomento Industrial (SECOFI), Banco de Informacion Sectoral, Industria Maquiladora, http:// www.secofi.gob.mx/, accessed March 2002. UNEMPLOYMENT U.S. and Arizona data: Bureau of Labor Statistics, Economy at A Glance, at http://www.bls.gov/eag/eag.map.htm, accessed 26 April 2001. Mexico and Sonora data: Perfil sociodemografico (INEGI, 1995) for each border state, and XII Censo General de Poblacion y Vivienda 2000 (INEGI, 2000).

Population

U.S. and Arizona data: UAOED estimates based on U.S. Census data. Population in 2000 and estimates for 1990, 1995, and 2001 from U.S. Census Bureau at http://www.census.gov/. Population for 1991-1994 interpolated from 1990 census figures and 1995 census bureau estimate, population for 1996-1999 interpolated from 1995 census bureau estimate and 2000 census figures. Mexico and Sonora data: Population for 2000 is the definitive result of the 2000 Censo General de Poblacion y Vivienda, INEGI, Informacion Por Entidad Federativa, at http://www.inegi.gob.mx/entidades/espanol/fentidades.html. Population for 2001 from Bancomer estimate, Regional Economic Report, Third Quarter 2001. Population for 1991-1994 interpolated from 1990 and 1995 census figures, population for 1996-1999 interpolated from 1995 and 2000 census figures.

REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

Object Description

Rating
TITLE	Regional economic indicators, Arizona-Sonora region
CREATOR	Pavlakovich-Kochi, Vera;
SUBJECT	Economic indicators--Arizona--Periodicals; Economic indicators--Mexico--Sonora (State)--Periodicals; Sonora (Mexico : State)--Commerce--Arizona--Periodicals; Arizona--Commerce--Mexico--Sonora (State)--Periodicals; Quality of life--Arizona--Periodicals; Quality of life--Mexico--Sonora (State)--Periodicals;
Browse Topic	Business and industry Government and politics
DESCRIPTION	This title contains one or more publications.
Language	English
Contributor	Arizona-Mexico Commission.
Publisher	University of Arizona--Office of Economic Development;
Material Collection	State Documents Annual Reports
Acquisition Note	http://www.oepa.arizona.edu/Lib/Media/Docs/
Source Identifier	UA 55.3:I 52/
Location	54887323

Description

TITLE	Arizona-Sonora region 2003 regional economic indicators
DESCRIPTION	78 pages (PDF version). File size: 3665.796 KB. "September 2003"
Contributor	Mwaniki, Lora; Arizona. Dept. of Commerce;
TYPE	Text
Acquisition Note	http://www.oepa.arizona.edu/Lib/Media/Docs/
RIGHTS MANAGEMENT	Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution.
DATE ORIGINAL	2003-09
Time Period	2000s (2000-2009)
ORIGINAL FORMAT	Born Digital
Source Identifier	UA 55.3:I 52/2003
DIGITAL IDENTIFIER	2003indicatorrpt.pdf
DIGITAL FORMAT	PDF (Portable Document Format)
REPOSITORY	Arizona State Library, Archives and Public Records--Law and Research Library.
File Size	3665.796 KB
Full Text	Regional Economic Indicators: Arizona-Sonora Region 2003 Prepared by: Dr. Vera Pavlakovich-Kochi, Program Director and Lora Mwaniki, Research Specialist Regional Development Program The University of Arizona Office of Economic Development Dr. Peter Likins, President Bruce A. Wright, Associate Vice President for Economic Development Tucson, Arizona September 2003 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Acknowledgements We acknowledge the contributions of the following organizations in providing data for this project: Arizona-Mexico Commission (AMC) Banco de Mco (Banxico) Banco de Comercio (Bancomer) Bureau of Economic Analysis (BEA) Bureau of Labor Statistics (BLS) Centro de Investigacin Alimentaci Desarrollo (CIAD) El Colegio de la Frontera Norte (Mexicali) Federal Reserve Bank of Dallas, El Paso Branch Immigration and Naturalization Service (INS) Instituto Nacional de Estadica, Geografe Informca (INEGI) Massachusetts Institute for Social and Economic Research (MISER) Secretarde Comercio y Fomento Industrial (SECOFI) Statistics Canada Subsecretarde Negociaciones Comerciales Internationales (SNCI) Texas Center for Border Economic and Enterprise Development U.S. Census Bureau U.S. Customs Service U.S. Department of Transportation (USDOT) U.S. International Trade Commission (USITC) Universidad Auta de Ciudad Juz University of Arizona Center for Applied Spatial Analysis University of Arizona Economic and Business Research Program We thank the following individuals in the Office of Economic Development for their contribution in the production of this report (in alphabetical order): Jessica Burger, Intern David de Kok, MTLUS Program Director Marshall A. Worden, Associate Director REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Contents Regional Economic Indicators How the indicators project came about......................................... Regional economic indicators mission statement......................... How to interpret this report........................................................... What is different in the 2003 report.............................................. The Arizona-Sonora Region Map of the Arizona-Sonora Region.............................................. What is the Arizona-Sonora Region............................................. The Arizona-Sonora Region compared to all U.S.-Mexico border states.......................................................... Arizona's rank among the four U.S. border states....................... Sonora's rank among the six Mexican border states.................... NAFTA Indicators...................................................................... Region's share of exports to NAFTA markets.............................. How Arizona and Sonora performed individually............ Region's share of U.S.-Mexico global exports............................. How Arizona and Sonora performed individually............ Region's share of U.S.-Mexico commodity flow.......................... Region's share of U.S.-Mexico electric/electronic shipments...... Region's share of U.S.-Mexico machinery shipments ................. Region's share of U.S.-Mexico plastic materials shipments ........ Region's share of fresh produce import flows from Mexico ....... Region's share of truck traffic via U.S.-Mexico BPOE................ Regional Integration Indicators................................................. Cross-border vehicle traffic........................................................... Persons crossing the border........................................................... Air passenger traffic...................................................................... Binational commissions attendance.............................................. Leading Sectors Indicators........................................................ General economic indicators Region's share of border states' gross state product (GSP).......... How Arizona and Sonora performed individually............ Arizona's share of U.S. border states' employment in foreign owned establishments (FOE)........................................ Sonora's share of Mexican border states' foreign direct investment (FDI)............................................................. 1 2 2 3 4 5 6 7 7 9 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 26 28 29 30 31 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Contents (continued) Leading Sectors Indicators (continued) Manufacturing/Maquiladora sector Region's share of border states' manufacturing production.............. How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico manufacturing exports.................... How Arizona and Sonora performed individually................ Sonora's share of maquiladora employment..................................... Share of technical/administrative staff in maquiladoras................... Share of national inputs in Sonora's maquiladoras.......................... Sonora's ratio of border states' maquiladora productivity................ Agribusiness sector Region's share of border states' agricultural production.................. How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico agricultural exports........................ How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico livestock exports............................ How Arizona and Sonora performed individually................ Mining sector Region's share of border states' mining production.......................... How Arizona and Sonora performed individually................ Region's share of U.S.-Mexico mining exports............................... How Arizona and Sonora performed individually................ 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Transportation sector Region's share of border states' transportation services................... 50 How Arizona and Sonora performed individually................ 51 Quality of Life Indicators............................................................. Adults with a college degree............................................................ How Arizona and Sonora performed individually............... Per-capita income............................................................................ How Arizona and Sonora performed individually............... Average wage and salary income in Arizona's manufacturing........ Average wage and salary income in Sonora's maquiladoras........... Unemployment................................................................................ How Arizona and Sonora performed individually............... 53 54 55 56 57 58 59 60 61 Methodology................................................................................... 63 Data Sources................................................................................... 67 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Regional Economic Indicators How the indicators project came about In 1993, the Arizona-Mexico Commission and its sister organization, the Comisionora-Arizona, initiated a binational strategic economic planning process to analyze how the two neighboring states could increase their regional competitiveness in the world economy and enhance the overall quality of life for their residents. One of the recommendations of the Strategic Economic Development Vision was to develop a set of indicators as a tool to monitor progress toward the goals of binational economic development. These goals are: To develop Arizona and Sonora as a single region with a competitive advantage in the global marketplace. To facilitate the movement of goods, services, people and information through the Region1 and to promote the establishment of a trade corridor with Arizona and Sonora as the hub. To stimulate and encourage cross-border industry cluster development in order to increase value-added economic activity. To develop new external markets and new market opportunities for the Arizona-Sonora Region. To promote linkages and eliminate barriers to development and to promote complementarity in commerce, trade and production. To identify and develop the economic foundations, infrastructure and services needed to reach the desired level of competitiveness in the Region. To encourage regional economic development in accordance with principles of sustainable development. Source: Strategic Economic Development Vision for the Arizona-Sonora Region, 1995. 1 Region, when capitalized, refers to Arizona and Sonora jointly. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 1 Regional Economic Indicators Regional Economic Indicators Mission The purpose of the Regional Economic Indicators is to help policy and decision-makers understand and monitor economic changes in the Arizona-Sonora Region and to support policies that promote economic transformation, investment and entrepreneurship in the Region. How to interpret this report Regional Economic Indicators is an attempt to monitor developments in an emerging binational region; i.e., an area of increasing economic integration that transcends an international border. This report invites you to look at Arizona and Sonora in a new way-- as a single economic region. The emphasis is less upon how Arizona and Sonora differ--for instance, in per capita income--although measures for each state are reported. Instead, the report focuses on change: i.e., whether the levels of per capita income in both states are increasing or decreasing over time. In order to assess whether the Region made real progress, the trends are compared with changes in other U.S.-Mexico border states. Thus, the overall assessment of the Region's progress is based on whether its relative position improved within the entire U.S.-Mexico border region. Percent (%) changes in the report are based on raw data and may therefore differ from percent (%) changes calculated from the rounded-up numbers shown in the charts. 2 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Regional Economic Indicators What is different in the 2003 report As in the last Regional Economic Indicators: Arizona-Sonora Region 2002, exports are reported using data based on the North American Industry Classification System (NAICS) instead of the Standard Industrial Classification (SIC) system. Data-providing agencies such as the U.S. Census Bureau, U.S. International Trade Commission (USITC), Bureau of Economic Analysis (BEA), and INEGI regularly revise statistics. We use the latest historical data available for the construction of all indicators. This results in some numbers being slightly different from those reported in previous reports. Commodity flow is measured through all customs districts in the border states to better understand the Region's role (including Phoenix and Tucson) in the U.S.-Mexico trade. Nogales District is the only customs district in Arizona. It includes Douglas, Lukeville, Naco, Nogales, Phoenix, San Luis, Sasabe and Tucson ports-of-entry. Other U.S.-Mexico border states' customs districts include: San Diego, Los Angeles and San Fransisco in California; and Dallas/Fort Worth, Houston/Galveston, Laredo and Port Authur in Texas. In general, the 2002 data reflect a slow recovery from the region's economic downturn as a consequence of the 2000-2001 economic recession and the impacts of September 11, 2001 events. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 3 The Arizona-Sonora Region 4 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 The Arizona-Sonora Region What is the Arizona-Sonora Region Arizona and Sonora share a 361-mile long border between the United States and Mexico. Combined, they encompass an area of 183,460 square miles with 7,760,053 residents, or 9.5 percent of the total population living in the U.S.-Mexico border states. Building on a long tradition of cultural and economic ties, the two states engaged in a binational plan with the purpose of increasing benefits from the North American Free Trade Agreement (NAFTA) and improving the quality of life. The Region is positioned at the core of the CANAMEX trade corridor connecting southwest Canada with Mexico's Pacific coast and Mexico City. Basic Facts: Sources: U.S. Census Bureau and INEGI, accessed 2003. Arizona 2002 population estimate from U.S. Census Bureau; Sonora 2002 population estimate from Bancomer. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 5 The Arizona-Sonora Region The Arizona-Sonora Region compared to all U.S.-Mexico border states One way of assessing the relative position of the Arizona-Sonora Region is to compare it with the entire U.S.-Mexico border region. There are four border states on the U.S. side: Arizona, California, New Mexico and Texas. The six border states on the Mexican side are Sonora, Baja California Norte, Chihuahua, Coahuila, Nuevo Lend Tamaulipas. Relative to the entire U.S.-Mexico border region, Arizona-Sonora accounts for: 9.5% of total population (2002) 6.0% of cross-border commodity flow (2002) 44.6% of cross-border fresh produce import flows from Mexico (2002) 7.0% of cross-border electric/electronic equipment shipments (2002) 4.0% of cross-border machinery shipments (2002) 6.2% of cross-border plastics shipments (2002) 7.0% of cross-border commercial truck traffic (2002) 7.1% of total gross state product (2001) 8.9% of agricultural production (2001) 7.8% of manufacturing production (2001) 6.1% of transportation services (2001) 2.1% of mining production (2001) 6 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 The Arizona-Sonora Region Arizona's rank among the four U.S. border states (1 = first place, 4 = last place) Unemployment rate (low) (2000)............................................................. Adults with a college degree, per capita (2000)....................................... Exports to NAFTA markets, per capita (2002)........................................ Agricultural (excluding livestock) exports, per capita (2002)................. Agricultural (including livestock) GSP, per capita (2001)...................... Livestock exports, per capita (2002)....................................................... Employment in foreign-owned establishments, per capita (2000).......... Exports to global markets, per capita (2002)......................................... Manufacturing exports, per capita (2002).............................................. Per capita income (2000)........................................................................ Transportation GSP, per capita (2000)................................................... Mining exports, per capita (2002).......................................................... Mining GSP, per capita (2000)............................................................... Manufacturing GSP, per capita (2000)................................................... 1 2 2 3 3 3 3 3 3 3 3 4 4 4 Sonora's rank among the six Mexican border states (1 = first place, 6 = last place) Agricultural GSP, per capita (2001)........................................................ Maquiladora productivity (2002)............................................................. Mining GSP, per capita (2001)................................................................ Unemployment rate (low) (2000)............................................................ Adults with a college degree, per capita (2000)...................................... Foreign direct investment, per capita (2001)........................................... Manufacturing GSP, per capita (2001).................................................... Maquiladora employment, per capita (2002).......................................... Per capita income (2000)......................................................................... Transportation GSP, per capita (2001).................................................... 1 2 3 3 4 5 5 5 5 6 Note: Census population estimates are used to calculate the per capita measures in 2001 and 2002 for both the U.S. and Mexico. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 7 8 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 NAFTA Indicators The NAFTA indicators measure changes in the Region's share of commodity and traffic flows and, thus, indirectly the Region's competitiveness within the NAFTA area. Two indicators measure changes in the Region's exports: Share of exports to NAFTA markets Share of U.S.-Mexico global exports The Region's performance in cross-border commodity flows compared to the U.S.-Mexico Border Region is measured by the following indicators: Share of U.S.-Mexico commodity flow Share of U.S.-Mexico electric/electronic shipments Share of U.S.-Mexico machinery shipments Share of U.S.-Mexico plastic materials shipments Share of fresh produce import flows from Mexico Share of truck traffic via U.S.-Mexico BPOE* Supplements to NAFTA Indicators The supplements to the NAFTA indicators give information about how Arizona and Sonora have performed individually in several areas. Arizona's and Sonora's shares of exports to NAFTA markets Arizona's and Sonora's shares of U.S.-Mexico global exports *BPOE = Border Ports of Entry; refers to ports of entry along the U.S.-Mexico border. For other indicators in the NAFTA indicators category, all U.S. border states Ports of Entry (POE) are used. POE = Ports of Entry; includes all U.S. border states' surface ports, seaports and airports categorized by the U.S. International Trade Commission (USITC) under customs districts. The U.S. border states customs districts used in this report are: Nogales customs district in Arizona; Los Angeles, San Diego and San Francisco in California; and Dallas/Fort Worth, Houston/Galveston, Laredo and Port Arthur in Texas. New Mexico does not have any commodity flow data in the USITC database. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 9 NAFTA Indicators Basic Facts The Region exported $8.2 billion worth of merchandise to NAFTA markets in 2002, representing a 4.3 percent decrease in comparison with 1997. Arizona's exports in 2002 totaled $4.2 billion while Sonora's exports totaled $4.0 billion. Region's share of exports to NAFTA markets Definition: This indicator measures the change in Arizona-Sonora's share of combined exports relative to total intra-NAFTA trade--that is, all exports from one North American country to another. An increase in market share suggests an improvement in the Region's competitive position within the NAFTA markets. Region's Trend Total intra-NAFTA trade amounted to $625.7 billion in 2002, an increase of 26.4 percent over the 1997 level. The Region's share of exports to NAFTA markets was 1.3 percent in 2002, which is lower than its 1997 share of 1.7 percent. What the Indicator Suggests (2001-2002) The Region's share of exports to NAFTA markets fell from 1.6 to 1.3 percent between 2001 and 2002. Region's share of exports to NAFTA markets.................... 1.3% Change in Region's share........................................ -8.7% Region's relative position....................................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco, SNCI. 10 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 NAFTA Indicators Share of exports to NAFTA markets How Arizona and Sonora performed individually Arizona's and Sonora's Trends Arizona's NAFTA exports have increased 28.6 percent since 1997, compared to the 16.6 percent increase in total U.S. exports to NAFTA markets. Sonora's exports to NAFTA markets have declined 24.5 percent since 1997, while Mexico's exports to NAFTA markets have increased 51.4 percent. Arizona's Share (2001-2002) Arizona's share of exports to NAFTA markets fell 12.1 percent between 2001 and 2002. However, Arizona's share of U.S. exports to NAFTA markets has grown from 1.5 percent in 1997 to 1.6 percent in 2002. Arizona's share of exports to NAFTA markets................... 1.6% Change in Arizona's share...... -12.1% Arizona's relative position................................DECLINED Sonora's Share (2001-2002) Sonora's share of exports to NAFTA markets fell 26.8 percent between 2001 and 2002. Sonora's share of NAFTA exports was 2.8 percent in 2002, compared to 5.5 percent in 1997. Sonora's share of exports to NAFTA markets................... 2.8% Change in Sonora's share....... -26.8% Sonora's relative position..................................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco, SNCI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 11 NAFTA Indicators Basic Facts Combined global exports from Arizona and Sonora were worth $16.2 billion in 2002, a decrease of 10.4 percent from 1997. Arizona accounted for $11.9 billion of the Region's global exports, while Sonora contributed $4.3 billion. Region's share of U.S.-Mexico global exports Definition: Share of global exports measures changes in Arizona-Sonora's share of total exports from the U.S. and Mexico. It indirectly measures the Region's competitiveness in the global economy. Region's Trend Combined global exports from the U.S. and Mexico totaled $853.9 billion in 2002, an increase of 7.0 percent since 1997. The Region's share of U.S.Mexico exports to the world was 1.9 percent in 2002, compared to 2.3 percent in 1997. What the Indicator Suggests (2001-2002) From 2001 to 2002, the Region experienced a greater rate of decline in global exports than the whole of the U.S. and Mexico, decreasing its share of U.S.-Mexico global exports. Region's share of U.S.-Mexico global exports............................. 1.9% Change in Region's share........ -9.5% Region's relative position....................................DECLINED SOURCES: MISER (OM data), SNCI, Banco de Mco. Note: Sonora export data from 1997-2001 revised due to change in data source. 12 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 NAFTA Indicators Share of U.S.-Mexico global exports How Arizona and Sonora performed individually Arizona's and Sonora's Trends Arizona's exports to the world have decreased 14.1 percent since 1997, compared to a 0.8 percent increase for the whole U.S. Sonora's global exports have increased 1.7 percent since 1997 while Mexico's have increased 45.5 percent. Arizona's Share (2001-2002) Arizona's share of U.S. exports to the world did not change between 2001 and 2002. Arizona's share has fallen from 2.0 percent in 1997 to 1.7 percent in both 2001 and 2002. Arizona's share of U.S. global exports............................. 1.7% Change in Arizona's share......... 0% Arizona's relative position....................................CONSTANT Sonora's Share (2001-2002) From 2001 to 2002, Sonora's global exports decreased at a greater rate than Mexico as a whole. Sonora's share of Mexico's exports to the world has declined from 3.7 percent in 2001 to 2.7 percent in 2002. Sonora's share of Mexico's global exports........................... 2.7% Change in Sonora's share....... -27.0% Sonora's relative position.................................DECLINED SOURCES: MISER (OM data), SNCI, INEGI, Banco de Mco. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 13 NAFTA Indicators Basic Facts In 2002, almost $12.6 billion worth of commodities passed to and from Mexico through the Region's ports-ofentry, a decrease of 14.6 percent since 2001, but an increase of 85.6 percent since 1993. Region's share of U.S.-Mexico commodity flow Definition: Share of cross-border commodity flow measures changes in the dollar value of the commodity flow through the Region's ports-of-entry (including Tucson and Phoenix) in comparison with total commodity flow through all U.S.-Mexico border states' ports-of-entry. An increase in relative share indicates an increase in the relative importance of the Region as a gateway to and from Mexico. Region's Trend The total value of commodities passing through all U.S. border states' ports-ofentry, to and from Mexico, totaled $210.6 billion in 2002, an increase of 0.2 percent since 2001 but an increase of 185.5 percent since 1993. From 2001 to 2002, the Region experienced a relatively greater decrease in commodity flow than the average for U.S.Mexico border states. What the Indicator Suggests (2001-2002) The Region's share remains below its 1993 level of 9.2 percent, and decreased further in the last year, from 7.0 to 6.0 percent. Region's share of U.S.-Mexico POE commodity flow........... 6.0% Change in Region's share...................................... -14.7% Region's relative position...............................DECLINED SOURCES: USITC. 14 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 NAFTA Indicators Region's share of U.S.-Mexico electric/electronic shipments Definition: This indicator measures the total flow of electric/electronic equipment to and from Mexico, through the Region's ports-of-entry (including Tucson and Phoenix) and compares the trend in flow through all U.S.-Mexico border states' ports-ofentry. Change in the Region's share of shipments suggests change in the Region's relative position within the NAFTA trade area. Basic Facts In 2002, $3.7 billion in electric and electronic equipment passed through the Region's ports-of-entry, a decrease of 21.6 percent from 2001, but an increase of 186.0 percent since 1993. Region's Trend The total value of electric/electronic equipment to and from Mexico passing through all U.S.-Mexico border states' ports-of-entry was $52.1 billion in 2002, a decrease of 4.6 percent since 2001 but an increase of 173.0 percent since 1993. The Region's share of U.S.Mexico shipments was 7.0 percent in 2002, which is above its 1993 level of 6.3 percent. What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region experienced a greater decrease in the flow of electric/electronic equipment than the average for U.S.-Mexico border states. Region's share of U.S.-Mexico electric/electronic shipments.... 7.0% Change in Region's share....................................... -17.8% Region's relative position.................................DECLINED SOURCE: USITC. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 15 NAFTA Indicators Basic Facts More than $1.2 billion in machinery passed through the Region's ports-ofentry in 2002, an increase of 2.7 percent from 2001, and an increase of 48.4 percent since 1993. Region's share of U.S.-Mexico machinery shipments Definition: This indicator measures the total flow of machinery through the Region's ports-of-entry (including Tucson and Phoenix) and compares the trend in this flow to that going through all U.S. border states' ports-of-entry. Region's Trend The total value of machinery shipments to and from Mexico passing through all U.S.-Mexico border states' ports-ofentry totaled $30.6 billion in 2002, an increase of 3.1 percent since 2001, and an increase of 249.3 percent since 1993. The Region's share of border states' machinery shipments has fallen from 9.4 percent in 1993 to 4.0 percent in 2002. What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region share of machinery shipments to and from Mexico has remained almost unchanged (negligible decrease). Region's share of U.S.-Mexico machinery shipments............. 4.0% Change in Region's share........................................ 0.0% Region's relative position...............................CONSTANT SOURCE: USITC. 16 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 NAFTA Indicators Region's share of U.S.-Mexico plastic materials shipments Definition: The shipment of plastic materials to and from Mexico through the Region's ports-of-entry (including Tucson and Phoenix) provides a measurement of the Region's share of total commodity flow though all U.S.-Mexico border states' ports-ofentry. Basic Facts In 2002, $486.7 million in plastic materials, to and from Mexico, passed through the Region's ports-of-entry, a decrease of 12.2 percent from 2001, but an increase of 102.0 percent since 1993. Region's Trend The total value of plastics shipments passing through all U.S.-Mexico border states' ports-of-entry totaled $7.9 billion in 2002, an increase of 1.6 percent since 2001, and an increase of 220.0 percent since 1993. The Region's share of border states' plastics shipments has fallen from 9.8 percent in 1993 to 6.2 percent in 2002. What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region experienced a greater decrease in the flow of plastic shipments than the average for U.S.-Mexico border states. Region's share of U.S.-Mexico plastic materials shipments.... 6.2% Change in Region's share....................................... -13.6% Region's relative position................................DECLINED SOURCE: USITC. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 17 NAFTA Indicators Basic Facts In 2002, the Region's ports-of-entry handled almost $1.4 billion worth of fresh produce, grown mainly in Sinaloa and Sonora. This represents a decrease of 4.3 percent since 2001, but an increase of 80.4 percent since 1993. Region's share of fresh produce import flows from Mexico Definition: This indicator measures the share of Mexican fresh produce exports that pass through the Region's ports-of-entry (including Tucson and Phoenix) relative to all U.S.-Mexico border states' ports-of-entry. An increase in this indicator suggests a strengthening of the Region's relative position in NAFTA fresh produce agricultural trade. Region's Trend The total value of Mexican fresh produce imports passing through all U.S. border states' ports-of-entry totaled almost $3.1 billion in 2002, an increase of 62.1 percent since 1993. The Region's share of fresh produce import flows from Mexico in 2002 was 44.6 percent, compared to 40.1 percent in 1993. What the Indicator Suggests (2001-2002) From 2001 to 2002, the U.S.-Mexico border states experienced a 1.2 percent increase in fresh produce import flows from Mexico, while the Region experienced a decrease of 4.3 percent. Region's share of U.S.-Mexico fresh produce import flows.............. 44.6% Change in Region's share........................................ -5.3% Region's relative position..................................DECLINED SOURCE: USITC. 18 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 NAFTA Indicators Region's share of truck traffic via U.S.-Mexico BPOE Definition: This indicator monitors change in the Region's share of cross-border commercial truck crossings. Trucks carry more than 80 percent of all commodities traded between the U.S. and Mexico. The number of truck crossings is therefore a good indicator of the Region's border ports-of-entry to and from Mexico relative to all U.S.-Mexico border ports-of-entry. Basic Facts In 2002, 311,907 trucks crossed the border from Sonora to Arizona, a decrease of 7.2 percent from the previous year and a decrease of 6.2 percent since 1997. Region's Trend A total of approximately 4.4 million trucks crossed through all U.S.-Mexico border ports-of-entry in 2002, an increase of 2.8 percent since 2001, and an increase of 20.0 percent since 1997. The Region's share of U.S.-Mexico commercial truck crossings has fallen from 9.0 percent in 1997 to 7.0 in 2002, a drop of 9.7 percent from its 2001 level. What the Indicator Suggests (2001-2002) From 2001 to 2002 the Region experienced a larger decrease in commercial truck traffic than the U.S.-Mexico border region as whole. Region's share of U.S.-Mexico truck traffic.............................. 7.0% Change in Region's share....................................... -9.7% Region's relative position...............................DECLINED SOURCE: USDOT. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 19 20 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Regional Integration Indicators The regional economic integration indicators measure Arizona and Sonora's progress in becoming a single economic region. Cross-border vehicle traffic Persons crossing the border Air passenger traffic Binational commissions attendance REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 21 Cross-border vehicle traffic Regional Integration Indicators Definition: Vehicle traffic is one of the most straight-forward measures of the cross-border exchange of people and goods between two states. The measure used in this report includes both commercial (i.e., trucks) and noncommercial (i.e., passenger car) traffic. Although vehicle traffic is used here primarily as a measure of cross-border interaction, it also provides an indicator of infrastructure needs, by showing changes in the number of vehicles using Arizona and Sonora highways. Basic Facts In 2002, 10.8 million vehicles crossed from Sonora into Arizona, an increase of 2.9 percent from the previous year, and an increase of 14.8 percent from 1997. Region's Trend The number of vehicles crossing the Arizona-Sonora border has consistently increased from 1997 to 2001. In 2001, the cross-border traffic decreased by 1.0 percent but increased in 2002 by 2.9 percent. What the Indicator Suggests (2001-2002) Number of vehicles crossing the border from Sonora to Arizona................................ 2.9% SOURCES: University of Arizona Economic and Business Research Program based on INS and U.S. Customs Service data. 22 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Regional Integration Indicators Persons crossing the border Definition: The number of persons crossing the border either in vehicles or as pedestrians reflects the intensity of economic, cultural and other interaction between Arizona and Sonora. Most of these interactions are local in nature. Residents from both sides cross the border for shopping, work, business, family visits and entertainment. Basic Facts Almost 36 million people crossed the border from Sonora to Arizona in 2002. This is an increase of 9.5 percent from 2001 and an increase of 13.5 percent since 1997. Region's Trend The number of people crossing the Arizona-Sonora border has been on the rise from 1997 to 2000. The number dropped in 2001 by 6.7 percent compared to 2000 due to the September 11th attack. However, the number of persons crossing the border increased by 9.5 percent between 2001 and 2002. What the Indicator Suggests (2001-2002) Number of persons crossing the border from Sonora to Arizona................................ 9.5% SOURCES: University of Arizona Economic and Business Research Program based on INS and U.S. Customs Service data. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 23 Regional Integration Indicators Air passenger traffic Definition: This indicator is an indirect measure of interaction between the major urban areas of Arizona and Sonora. Air connections facilitate and promote business and recreational activities beyond the daily interactions typical of border communities. Basic Facts Over 77,000 people traveled by air between Sonora (Hermosillo) and Arizona (Phoenix and Tucson) in 2001. This represents an increase of 14.4 percent over the previous year, and an increase of 54.3 percent since 1997. Region's Trend Air passenger traffic declined between 1999 and 2000 by 10.0 percent, but picked up again between 2000 and 2001 by 14.4 percent. What the Indicator Suggests (2000-2001) Number of air passengers between Arizona and Sonora................................... 14.4% SOURCE: USDOT. 24 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Regional Integration Indicators Binational commissions attendance Definition: This indicator measures changes in the number of participants from Arizona and Sonora at joint plenary sessions of the Arizona-Mexico Commission and the Comisionora-Arizona. The sister organizations were formed in 1959 with the purpose of promoting commercial and cultural ties between Arizona and Sonora. Membership consists of representatives of government agencies, private sector organizations, institutions of higher education and the general citizenry. Since 1993 the commissions have taken a leading role in the binational strategic economic development planning process. Plenary sessions are organized twice a year, one taking place in Arizona and the other in Sonora. Although a number of factors influence participation, attendance at plenary sesions can be used as a proxy for level of interest in binational cooperation. Basic Facts The number of participants at the June 2002 plenary session was 370, a decrease of 24.5 percent compared to the June 2001 plenary session. Region's Trend The number of participants in the binational commissions consistently increased from 1998 to 2001. However in 2002, binational commissions participation decreased below the 1998 participation level by 2.6 percent. What the Indicator Suggests (2001-2002) Number of participants in binational commissions........ -24.5% SOURCE: AMC. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 25 Leading Sectors Indicators The leading sectors indicators monitor trends in economic activities identified as the driving forces in the Region's economy. The binational regional economic development plan supports strengthening of regional industrial clusters that transcend the border and build on complementary resources and cross-border networks. OVERALL ECONOMIC PERFORMANCE Share of border states' gross state product (GSP) MANUFACTURING/MAQUILADORA SECTOR Share of border states' manufacturing production Share of U.S.-Mexico manufacturing exports AGRIBUSINESS SECTOR Share of border states' agricultural production Share of U.S.-Mexico agricultural exports Share of U.S.-Mexico livestock exports MINING SECTOR Share of border states' mining production Share of U.S.-Mexico mining exports TRANSPORTATION SECTOR Share of border states' transportation services Supplements to Leading Sectors Indicators The supplements to the leading sectors indicators give information about how Arizona and Sonora have performed individually in a number of areas. OVERALL ECONOMIC PERFORMANCE Arizona's and Sonora's shares of border states' gross state product (GSP) Arizona's employment in foreign-owned establishments (FOE) Sonora's share of foreign direct investment (FDI) MANUFACTURING/MAQUILADORA SECTOR Arizona's and Sonora's shares of border states' manufacturing production Arizona's and Sonora's shares of U.S.-Mexico manufacturing exports Sonora's share of Mexico's maquiladora employment Sonora's share of technical/administrative staff in maquiladoras Share of national inputs in Sonora's maquiladoras Sonora's ratio of border states' maquiladora productivity 26 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Supplements to Leading Sectors Indicators (continued) AGRIBUSINESS SECTOR Arizona's and Sonora's shares of border states' agricultural production Arizona's and Sonora's shares of U.S.-Mexico agricultural exports Arizona's and Sonora's shares of U.S.-Mexico livestock exports MINING SECTOR Arizona's and Sonora's shares of border states' mining production Arizona's and Sonora's shares of U.S.-Mexico mining exports TRANSPORTATION SECTOR Arizona's and Sonora's shares of border states' transportation services REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 27 Leading Sectors Indicators Region's share of border states' gross state product (GSP) Definition: This indicator evaluates the Region's overall economic performance by comparing Arizona-Sonora's combined GSP to that for the entire U.S.-Mexico border region. Basic Facts The combined GSP of Arizona and Sonora was $155.9 billion in 2001, an increase of 88.1 percent since 1993. Arizona contributed $140.4 billion to the Region's combined GSP, while Sonora contributed $15.5 billion. Region's Trend The combined GSP for all U.S. and Mexico border states in 2001 was over $2.2 trillion, a 67.1 percent increase over the 1993 level. The Region's share of the combined U.S.-Mexico GSP has increased from 6.3 percent in 1993 to 7.1 percent in 2001. What the Indicator Suggests (2000-2001) Between 2000 and 2001, the Region's GSP continued to grow at a faster rate than the average for the whole U.S.Mexico border region. Region's share of U.S.-Mexico border states' GSP.................. 7.1% Change in Region's share........................................ 2.9% Region's relative position...............................IMPROVED SOURCES: BEA, INEGI. 28 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Share of border states' gross state product (GSP) How Arizona and Sonora performed individually Arizona's and Sonora's Trends Arizona's GSP has grown 91.9 percent since 1993, while the GSP for the whole U.S. border region has grown 67.0 percent. Sonora's GSP has grown 59.4 percent since 1993, while the GSP of all Mexican border states has increased 68.9 percent. Arizona's Share (2000-2001) Arizona had slightly higher growth rate in GSP than the U.S. border region as a whole between 2000 and 2001. Since 1993, Arizona's share of U.S. border states' total GSP has risen from 5.9 percent to 6.8 percent in 2001. Arizona's share of U.S. border states' GSP.................... 6.8% Change in Arizona's share....... 1.5% Arizona's relative position....................................IMPROVED Sonora's Share (2000-2001) Sonora had slightly higher growth rate in GSP than the Mexican border region as a whole. However, Sonora's share has fallen from 12.2 percent in 1993 to 11.5 percent in 2001. Sonora's share of Mexico border states' GSP................... Change in Sonora's share....... 11.5% 2.7% SOURCES: BEA, INEGI. Sonora's relative position.............................IMPROVED REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 29 Leading Sectors Indicators Arizona's share of U.S. border states' employment in foreign owned establishments (FOE) Definition: Outlays by foreign-owned investors to acquire or establish businesses in Arizona reflect favorable opinions about economic conditions in the state. Arizona's share of U.S. employment in foreign-owned establishments is used as a proxy indicator for the amount of foreign investment. Basic Facts Arizona had 75,222 people employed in foreign owned establishments in 2000, an increase of 43.6 percent since 1993. Arizona's Trend Over 1.2 million people were employed in foreign owned establishments in the four U.S. border states in 2000, an increase of 40.5 percent since 1993. Arizona's share of U.S. border states' employment in FOE was 5.9 percent in 1999, compared to 5.8 percent in 1993. Arizona's Share (1999-2000) Between 1999 and 2000, Arizona had slower growth in employment in foreign owned establishments than the whole U.S. border region. Arizona's share of U.S. border states' employment in FOE....... Change in Arizona's share......................................... 5.9% -4.2% Arizona's relative position..................................DECLINED SOURCE: BEA. 30 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Sonora's share of Mexican border states' foreign direct investment (FDI) Definition: Foreign direct investment is one of the most common indicators reflecting confidence of foreign investors in a country's economy. It also is an indicator of the globalization process. Basic Facts Sonora received $154.9 million in foreign direct investment in 2001, a decrease of 59.8 percent from 2000, but an increase of 44.7 percent since 1993. Sonora's Trend Total foreign direct investment in the whole Mexico border region summed to over $3.4 billion in 2001, an increase of 64.8 percent since 1993. From 2000 to 2001, foreign direct investment in the total Mexico border region decreased by 29.5 percent as Sonora's FDI dropped dramatically. Sonora's Share (2000-2001) Sonora's share of FDI decreased from 8.1 percent in 2000 to 4.6 percent in 2001. Sonora's share Mexican border states' FDI ................... 4.6% Change in Sonora's share....................................... -43.2% Sonora's relative position...............................DECLINED SOURCE: SNCI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 31 Leading Sectors Indicators Region's share of border states' manufacturing production Definition: Manufacturing's contribution to GSP is used to measure manufacturing production. This indicator monitors whether the Arizona-Sonora Region is enhancing its relative position in the manufacturing sector within the U.S.-Mexico border region. Basic Facts The combined manufacturing GSP of Arizona and Sonora was $24.7 billion in 2000, an 82.2 percent increase since 1993. Arizona's manufacturing GSP totaled over $21.7 billion and Sonora's totaled over $2.9 billion. Region's Trend The combined manufacturing GSP for all U.S. and Mexico border states in 2001 was $318.0 billion, a 46.9 percent increase over the 1993 level. The Region's share of manufacturing GSP has expanded from 6.2 percent in 1993 to 7.8 percent in 2001. What the Indicator Suggests (2000-2001) Between 2000 and 2001, the Region's manufacturing GSP increased while the average for the whole U.S.-Mexico border region decreased. Region's share of U.S.-Mexico border states' manufacturing production................................. 7.8% Change in Region's share........ 11.4% Region's relative position...................................IMPROVED SOURCES: BEA, INEGI. 32 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Share of border states' manufacturing production How Arizona and Sonora performed individually Arizona's and Sonora's Trends Arizona's manufacturing GSP has grown 81.7 percent since 1993, while the GSP for the whole U.S. border region has grown 44.2 percent. Sonora's GSP has grown 85.6 percent since 1993, while the GSP of all Mexican border states has increased 76.8 percent. Arizona's Share (2000-2001) In the past year, Arizona had a higher growth rate in manufacturing GSP than the U.S. border region as a whole. Arizona's share has increased from 6.0 percent in 1993 to 7.6 percent in 2001. Arizona's share of U.S. border states' manufacturing production................................. 7.6% Change in Arizona's share..... 11.8% Arizona's relative position..................................IMPROVED Sonora's Share (2000-2001) Between 2000 and 2001, Sonora continued to have greater growth in manufacturing GSP than the Mexican border region. Sonora's share of manufacturing GSP has increased from 9.0 percent in 1993 to 9.5 in 2001. Sonora's share of Mexican border states' manufacturing production................................. 9.5% Change in Sonora's share........ 4.4% SOURCES: BEA, INEGI. Sonora's relative position..IMPROVED REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 33 Leading Sectors Indicators Region's share of U.S.-Mexico manufacturing exports Definition: Share of manufacturing exports measures whether the Arizona-Sonora Region increased its share of global exports relative to the U.S.-Mexico combined exports, an indirect indicator of changes in the Region's competitiveness. Basic Facts The Region exported $15.0 billion in manufactured products in 2002, a decrease of 13.2 percent since 1997. Arizona exported $11.3 billion in manufactured products and Sonora exported $3.7 billion. Region's Trend Total manufacturing exports from the U.S. and Mexico totaled $765.2 billion in 2002, an increase of 7.9 percent since 1997. The Region's share has declined from 2.4 percent in 1997 to 2.0 percent in 2002. What the Indicator Suggests (2001-2002) The Region had a lesser percentage decrease in manufacturing exports than all of U.S.-Mexico from 2001 to 2002. Region's share of U.S.-Mexico manufacturing exports.............. 2.0% Change in Region's share......................................... 0.4% Region's relative position...................................IMPROVED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. 34 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators How Arizona and Sonora performed individually Share of U.S.-Mexico manufacturing exports Arizona's and Sonora's Trends Arizona's manufacturing exports have declined 14.7 percent since 1997 while U.S. exports have grown 1.4 percent. Since 1997, Sonora's manufacturing exports have declined 8.4 percent, while Mexico's have grown 49.8 percent. Arizona's Share (2001-2002) Arizona's manufacturing exports fell 4.2 percent from 2001 to 2002, compared to a 5.2 percent decrease for all of the U.S. Arizona's share of U.S. manufacturing exports has fallen from 2.2 percent in 1997 to 1.8 percent in both 2001 and 2002. Arizona's share of U.S. manufacturing exports............. 1.8% Change in Arizona's share...... 0.0% Arizona's relative position...............................CONSTANT Sonora's Share (2001-2002) From 2001 to 2002, Sonora continued its decline in manufacturing exports, and at a faster rate than all of Mexico. Sonora's share has fallen from 4.2 percent in 1997 to 2.6 percent in 2002. Sonora's share of Mexican manufacturing exports............. 2.6% Change in Sonora's share........ - 3.3% Sonora's relative position...................................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 35 Leading Sectors Indicators Sonora's share of maquiladora employment Definition: The maquiladora sector exports the majority of its products to foreign markets and attracts the majority of foreign direct investment in Mexico. Employment expansion in the maquiladora sector, therefore, reflects increased attractiveness of the Region in the global economy. Basic Facts Sonora's maquiladoras employed 76,821 people in 2002, a decrease of 22.7 percent since 2001 but an increase of 78.9 percent since 1993. Over 889,000 people were employed in maquiladoras in Mexican border states in 2002, an increase of 82.2 percent since 1993. Sonora's Trend Sonora's maquiladora employment has grown 78.9 percent since 1993 while maquiladora employment in the Mexican border states as a whole has grown 82.2 percent in the same time period. Sonora's share has declined from 8.8 percent in 1993 to 8.6 percent in 2002. Sonora's Share (2001-2002) From 2001 to 2002, Sonora's share of Mexican border states' maquiladora employment decreased sharply. It fell to its lowest level since 1993. Sonora's share of Mexico border states' maquiladora employment............................. 8.6% Change in Sonora's share....... -14.0% Sonora's relative position.................................DECLINED SOURCE: INEGI. 36 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Share of technical/administrative staff in maquiladoras Definition: Changes in Sonora's share of Mexican border states' technical and administrative positions reflects changes in the Region's share of skilled and administrative workers. An increase in these positions suggests a rise in skilled labor, managerial skills and transfer of technology. Basic Facts Sonora's maquiladoras employed 15,158 administrative and technical employees in 2002, a decrease of 20.9 percent since 2001 but an increase of 89.0 percent since 1993. The total for all Mexican border states in 2002 was 186,290 also a decrease of 8.8 percent since 2001. Sonora's Trend The growth of administrative and technical positions in Sonoran maquiladoras has increased 89.0 percent since 1993, slightly slower than the growth rate for those positions in all Mexican border states, of 99.5 percent. Sonora Share (2001-2002) Sonora's share of administrative and technical employees in Mexican border states' maquiladoras declined in the past year. Sonora's share of administrative and technical employees in maquiladoras........................ 8.1% Change in Sonora's share...... -13.3% Sonora's relative position..................................DECLINED SOURCE: INEGI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 37 Leading Sectors Indicators Share of national inputs in Sonora's maquiladoras Definition: The majority of inputs to Mexican maquiladoras are imported from outside the country, but some come from within Mexico. When Mexican national inputs are used in maquiladoras, many of these inputs come from local sources. The share of national inputs in maquiladoras is therefore a measure of the economic integration of maquiladoras into the host state. Basic Facts Sonora's maquiladoras used $28.7 million in national inputs in 2002, a decrease of 61.6 percent since 2001, but an increase of 758.5 percent since 1993. Over $1.2 billion in national inputs were consumed in maquiladoras in all Mexican border states in 2002, an increase of 22.4 percent since 2001. Sonora's Trend The value of national inputs in Sonora's maquiladoras has grown 758.5 percent since 1993 while the value of national inputs in maquiladoras in Mexican border states as a whole has grown 456.2 percent in the same time period. Sonora's National Input share has expanded from 1.5 percent in 1993 to 2.3 percent in 2002. Share in Sonora (2001-2002) Sonora's share of national inputs dropped dramatically from 7.5 in 2001 to 2.3 in 2002. Share of national inputs in Sonora's maquiladoras.............. 2.3% Change in Sonora's share........ -68.6% Sonora's relative position.................................DECLINED SOURCE: INEGI. 38 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Sonora's ratio of border states' maquiladora productivity Definition: According to INEGI, productivity in the maquiladora industry is measured in terms of value added per employee. Sonora's productivity rates are compared with the average productivity in Mexico's border states. Increases in productivity indicates improvement in regional competitiveness for business investment. Basic Facts Sonora's maquiladora productivity averaged $13,757 per employee in 2002, an increase of 9.8 percent since 2001 and an increase of 54.2 percent since 1993. Average productivity for all Mexican border states was $16,709 per employee last year, an increase of 8.3 percent since 2001 and an increase of 64.5 percent since 1993. Sonora's Trend Sonora's productivity lags behind the average productivity for all Mexican border states, increasing 54.2 percent since 1993, compared to an average increase of 64.5 percent for all Mexican border states. Sonora's Ratio (2001-2002) Productivity in Sonora's maquiladoras increased at a greater rate than for the whole Mexican border region between 2001 and 2002. Sonora's ratio of Mexico border states' productivity.............................. Change in Sonora's ratio......... 82.3% 1.4% SOURCE: INEGI. Sonora's relative position..................................IMPROVED REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 39 Leading Sectors Indicators Region's share of border states' agricultural production Definition: Agricultural contribution to GSP is used as a measure of agricultural production. This indicator measures changes in the Region's agricultural production relative to the whole U.S.-Mexico border region. An increased share suggests that the Region has enhanced its relative position among the U.S.-Mexico border states. Basic Facts The Region's agricultural GSP totaled $3.8 billion in 2001, an increase of 26.7 percent since 1993. Arizona's agricultural GSP was over $2.6 billion while Sonora's was $1.2 billion. Region's Trend The agricultural GSP of all U.S.Mexico border states totaled $42.2 billion in 2001, an increase of 27.4 percent since 1993. The Region's share of 8.9 percent in 2001 is slightly below its 1993 share of 9.0 percent. What the Indicator Suggests (2000-2001) The Region had a greater percentage growth in agricultural GSP between 2000 and 2001 than the whole U.S.Mexico border region. Region's share of U.S.-Mexico border states' agricultural production................................. 8.9% Change in Region's share........ 11.3% Region's relative position...............................IMPROVED SOURCES: BEA, INEGI. 40 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators How Arizona and Sonora performed individually Share of border states' agricultural production Arizona's and Sonora's Trends Arizona's agricultural GSP has increased 61.2 percent since 1993, while the U.S. border region as a whole has seen an increase of 33.2 percent. Sonora's agricultural GSP has shrunk 14.5 percent since 1993, while the Mexico border region's agricultural GSP has shrunk only 8.0 percent. Arizona's Share (2000-2001) Arizona had a larger rate of growth in agricultural GSP between 2000 and 2001 than the U.S. border region, with Arizona's share growing from 5.7 percent in 1993 to 6.9 percent in 2001. Arizona's share of U.S. border states' agricultural production................................. 6.9% Change in Arizona's share........ 9.5% Arizona's relative position.....................................IMPROVED Sonora's Share (2000-2001) Both Sonora and the entire Mexico border region increased their agricultural GSP between 2000 and 2001, but Sonora increased at a greater rate. Still Sonora's share has fallen from 29.2 percent in 1993 to 27.1 percent in 2001. Sonora's share of Mexican border states' agricultural production................................. Change in Sonora's share........ SOURCES: BEA, INEGI. 27.1% 12.4% Sonora's relative position..IMPROVED REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 41 Leading Sectors Indicators Region's share of U.S.-Mexico agricultural exports Definition: Agricultural exports include crops grown for food or fiber. Trends in exports of agricultural products to world markets indicate the globalization of the Region's agricultural production. An increase in the Arizona-Sonora Region's share of U.S.-Mexico global agricultural exports suggests an increase in the competitiveness of the Region's agricultural sector. Basic Facts The Region exported $731.1 million in agricultural products in 2002, an increase of 11.9 percent since 1997. Arizona exported $349.1 million and Sonora exported $382.0 million. Region's Trend The combined agricultural exports of the U.S. and Mexico totaled $29.0 billion in 2002, a decrease of 10.9 percent since 1997. The Region's share in 2002 was 2.5 percent, which is higher than its 1997 level of 2.0 percent. What the Indicator Suggests (2001-2002) From 2001 to 2002, the Region's share of combined U.S.-Mexico agricultural exports decreased. Region's share of U.S.-Mexico agricultural exports................. 2.5% Change in Region's share...... -15.7% Region's relative position...................................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. 42 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators How Arizona and Sonora performed individually Share of U.S.-Mexico agricultural exports Arizona's and Sonora's Trends Arizona's agricultural exports have decreased 1.2 percent since 1997 while U.S. agricultural exports have declined 11.7 percent. Sonora's agricultural exports have increased 27.3 percent since 1997 while Mexico's have decreased 4.4 percent. Arizona's Share (2001-2002) Arizona's share of U.S agricultural exports decreased from 1.6 in 2001 to 1.4 percent in 2002. Arizona's 2002 agricultural exports share is still above the 1997 share of 1.2 percent. Arizona's share of U.S. agricultural exports.................. 1.4% Change in Arizona's share..... -14.2% Arizona's relative position...............................DECLINED Sonora's Share (2001-2002) Sonora's share of Mexican agricultural exports decreased between 2001 and 2002. Sonora's 2002 share of 11.7 percent was above its 1997 share of 8.8 percent. Sonora's share of Mexican agricultural exports................... 11.7% Change in Sonora's share........ -13.2% Sonora's relative position..DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 43 Leading Sectors Indicators Region's share of U.S.-Mexico livestock exports Definition: Cattle production is one of the areas with great opportunities for cross-border cooperation between Arizona and Sonora agribusiness. An increase in the Region's share of livestock exports indicates an increase in the competitiveness of the Region's industry. Basic Facts The Region exported $214.3 million in livestock in 2002, an increase of 11.1 percent since 1997. Sonora accounted for the majority of the Region's exports, with $206.0 million, while Arizona's exports totaled $8.3 million. Region's Trend Combined U.S.-Mexico livestock exports totaled $1.6 billion in 2002, a 4.4 percent increase since 1997. The Region has expanded its share from 12.3 percent in 1997 to 13.1 percent in 2002. What the Indicator Suggests (2001-2002) The Region had a greater rate of growth in livestock exports between 2001 and 2002 than all of U.S. and Mexico. Region's share of U.S.-Mexico livestock exports....................... 13.1% Change in Region's share........ 8.2% Region's relative position...................................IMPROVED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. 44 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Share of U.S.-Mexico livestock exports How Arizona and Sonora performed individually Arizona's and Sonora's Trends Arizona's livestock exports are 65.5 percent lower in 2002 than in 1997, while U.S. livestock exports have decreased by 10.3 percent. Sonora's livestock exports have increased 21.9 percent since 1997 while Mexico's have increased 44.5 percent. Arizona's Share (2001-2002) Arizona had a decrease in livestock exports between 2001 and 2002 while the entire U.S. increased. Arizona's share in 2002 was 0.8 percent, compared to 2.1 percent in 1997. Arizona's share of U.S. livestock exports...................... 0.8% Change in Arizona's share..... -40.6% Arizona's relative position....................................DECLINED Sonora's Share (2001-2002) Sonora had slower growth in livestock exports than all of Mexico for 2001 to 2002. Sonora's 2002 share of 34.0 percent is still lower than its 1997 share of 40.3 percent. Sonora's share of Mexican livestock exports..................... 34.0% Change in Sonora's share...... -7.6% Sonora's relative position...................................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 45 Region's share of border states' mining production Leading Sectors Indicators Definition: Mining contribution to GSP is used as a measure of mining production. The Arizona-Sonora Region's share of mining production, relative to all border states, provides a measure of the Region's changing position within the entire U.S.Mexico border region. Basic Facts The Region's mining GSP totaled almost $1.3 billion in 2001, an increase from the 1993 amount by 13.4 percent. Arizona contributed $1.2 billion to the Region's mining GSP while Sonora contributed $158 million. Region's Trend The combined mining GSP for all U.S. and Mexico border states totaled $64 billion in 2001, an increase of 48.4 percent since 1993. The Region's share of 2.1 percent in 2001 is lower than its 1993 share of 2.8 percent. What the Indicator Suggests (2000-2001) The Region declined in mining GSP between 2000 and 2001, while the whole U.S.-Mexico border region increased. Region's share of U.S.-Mexico border states' mining production.......................... 2.1% Change in Region's share...... -7.7% Region's relative position...DECLINED SOURCES: BEA, INEGI. 46 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators How Arizona and Sonora performed individually Share of border states' mining production Arizona's and Sonora's Trends While the mining GSP in the U.S. border region as a whole has increased by 49.0 percent since 1993, Arizona's mining GSP has increased by only 13.4 percent. Sonora has decreased its mining GSP 12.7 percent from the 1993 level, while the total mining GSP for Mexican border states has increased by 19.6 percent. Arizona's Share (2000-2001) While Arizona declined in mining GSP between 2000 and 2001, the U.S. border region increased. Arizona's 2001 share of 1.9 percent is below its 1993 share of 2.5 percent. Arizona's share of U.S. border states' mining production......... 1.9% Change in Arizona's share........ -5.0% Arizona's relative position..DECLINED Sonora's Share (2000-2001) Sonora had a 25.3 percent decline in mining GSP between 2000 and 2001. Its 2000 share of 14.3 percent is below the 1993 level of 19.6 percent. Sonora's share of Mexican border states' mining production....... 14.3% Change in Sonora's share....... -28.5% Sonora's relative position...............................DECLINED SOURCES: BEA, INEGI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 47 Leading Sectors Indicators Region's share of U.S.-Mexico mining exports Definition: The mining exports indicator monitors changes in the Arizona-Sonora Region's relative position among U.S.-Mexico border states. An increase in the Region's share suggests that the Region's competitiveness in this traditional yet increasingly globalized economic activity increased. Basic Facts The Region's mining exports totaled $393.4 million in 2002, a decrease of 22.4 percent since 1997. Sonora accounted for $372.0 million of the Region's exports, while Arizona accounted for $21.4 million. Region's Trend The combined mining exports of the U.S. and Mexico equaled $19.1 billion in 2002, an increase of 3.1 percent since 1997. The Region's share in 2002 was 2.1 percent, compared to 2.7 percent in 1997. What the Indicator Suggests (2001-2002) Between 2001 and 2002, the Region's mining exports grew at a slower rate than mining exports for all of the U.S. and Mexico. Region's share of U.S.-Mexico mining exports..................... 2.1% Change in Region's share..................................... -37.8% Region's relative position.................................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. 48 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators How Arizona and Sonora performed individually Arizona's and Sonora's Trends Since 1997, Arizona's mining exports have decreased 58.0 percent, compared to a 27.0 percent decrease for all of the U.S. Sonora's mining exports have decreased 18.4 percent since 1997 while Mexico's have increased 24.6 percent. Share of U.S.-Mexico mining exports Arizona's Share (2001-2002) Arizona's mining exports declined by 38.5 percent between 2001 and 2002, in contrast to a 1.1 percent increase in mining exports for the U.S. as a whole. Arizona's share was 0.4 percent in 2002 compared to 0.7 percent in 1997. Arizona's share of U.S. mining exports........................ 0.4% Change in Arizona's share..... -39.1% Arizona's relative position...............................DECLINED Sonora's Share (2001-2002) Sonora experienced a 32.1 percent decrease in mining exports between 2001 and 2002, compared to a 12.1 percent increase for all of Mexico. Sonora's share was 4.2 percent in 1997 and 2.8 percent in 2002. Sonora's share of Mexican mining exports........................ 2.8% Change in Sonora's share...... -39.4% Sonora's relative position...............................DECLINED SOURCES: MISER (OM data), CIAD, SECOFI, Banco de Mco. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 49 Region's share of border states' transportation services Leading Sectors Indicators Basic Facts The Region's transportation GSP totaled almost $9.5 billion in 2001, an increase of 74.9 percent since 1993. Arizona contributed $7.9 billion to the Region's transportation GSP while Sonora contributed $1.6 billion. Definition: Transportation contribution to GSP is used as a measure of transportation services. This indicator is used to monitor the strength of the regional transportation sector relative to the entire U.S.-Mexico border region. Region's Trend The combined transportation GSP of all U.S. and Mexico border states totaled $155.1 billion, an increase of 73.5 percent since 1993. The Region's share was 6.1 percent in 1993 and is the same in 2001. What the Indicator Suggests (2000-2001) Between 2000 and 2001, the Region had faster growth in transportation GSP than the entire U.S.-Mexico border region. Region's share of U.S.-Mexico border states' transportation services...................................... 6.1% Change in Region's share.........0.0% Region's relative position....................................CONSTANT SOURCES: BEA, INEGI. 50 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators How Arizona and Sonora performed individually Share of border states' transportation services Arizona's and Sonora's Trends Arizona's transportation GSP has increased 71.6 percent since 1993, compared to 70.4 percent for the total U.S. border region. Sonora's transportation GSP has increased 93.0 percent since 1993 while the whole Mexico border region has increased its transportation GSP by 108.0 percent. Arizona's Share (2000-2001) Arizona experienced slightly faster growth in transportation GSP than the U.S. border region. Arizona's share was 5.7 percent in 2001 and 5.6 percent in 1993. Arizona's share of U.S. border states' transportation services....................................... 5.7% Change in Arizona's share......... 0.0% Arizona's relative position....................................CONSTANT Sonora's Share (2000-2001) Sonora experienced faster growth in transportation GSP than the total Mexico border region. Sonora's share had fallen from 11.1 percent in 1993 to 9.8 percent in 2000 but increased to 10.3 in 2001. Sonora's share of Mexican border states' transportation services...................................... 10.3% Change in Sonora's share.......... 5.1% Sonora's relative position................................IMPROVED SOURCES: BEA, INEGI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 51 52 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Quality of Life Indicators The quality of life indicators measure changes in the region's position within the entire U.S.-Mexico border region based on the following indicators: Adults with a college degree Per capita income Unemployment Supplements to Quality of Life Indicators Arizona's and Sonora's adults with a college degree Arizona's and Sonora's per capita income Average manufacturing wage and salary income in Arizona Average wage and salary income in Sonora's maquiladoras Arizona's and Sonora's unemployment REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 53 Adults with a college degree Quality of Life Indicators Basic Facts The Region scored a grade of 62.5 percent with respect to percentage of adults with a college degree in 2000. This represents a 66.7 percent increase in rank since 1995. Definition: A college degree or the equivalent education is required for the majority of jobs in the new economy. This indicator monitors change in the relative position of the Arizona-Sonora region within the entire U.S.-Mexico border region in terms of educational attainment. Progress suggests that the Region is building a stronger foundation for the new economy than other U.S.Mexico border states. What the Indicator Suggests Region's percent grade score in adults with a college degree....................... 62.5% Change in Region's grade....................................... 66.7% Region's relative position............................IMPROVED SOURCES: U.S. Census Bureau, INEGI. 54 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Adults with a college degree Quality of Life Indicators Arizona's and Sonora's Trends With 24.6 percent of the adult population (25 years and older) holding a college degree, Arizona's percentage of adults with a college degree has increased since 1995. From 1990 to 2000, Sonora has increased its percentage of population (15 years and older) holding a college degree from 8.7 percent to 12.2 percent. How Arizona and Sonora performed individually Arizona's Rank Arizona ranked second best among the four U.S. border states in 2000, an increase in ranking since 1995. Arizona's grade score in adults with a college degree..................... 75.0% Change in Arizona's grade..................................... 200.0% Arizona's relative position..............................IMPROVED Sonora's Rank Sonora ranked fourth out of six Mexican border states in 2000, the same rank it held in 1995. Sonora's grade score in adults with a college degree..................... 50.0% Change in Sonora's grade...................................... 0.0% Sonora's relative position..............................CONSTANT SOURCES: U.S. Census Bureau, INEGI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 55 GSP Per capita income Quality of Life Indicators Basic Facts The Region maintained its rank and grade score of 41.7 percent in 2001. Although this score has remained constant over the last seven years, it still represents an improvement of 42.9 percent since 1993. Definition: Per-capita income is one of the most commonly used indicators of the economic dimension of quality of life. This indicator measures the Region's relative position in comparison to all 10 U.S.-Mexico border states, expressed as a percent. What the Indicator Suggests The Region's percent grade score in GSP per capita income............ 41.7% Change in Region's grade....................................... 0.0% Region's relative position...............................CONSTANT SOURCE: UAOED estimate. 56 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Per capita income How Arizona and Sonora performed individually Quality of Life Indicators Arizona's and Sonora's Trends In 2001, Arizona's per capita income was $26,453, an increase of 44.4 percent from the 1993 level. Sonora's per capita income was $6,803 in 2001, which is 39.0 percent higher than the 1993 level. Arizona's Rank Arizona maintained it's rank of third among the four U.S. border states in terms of per capita income in 2001. Arizona's percent grade score in per capita income.................... 50.0% Change in Arizona's grade........................................ 0.0% Arizona's relative position...............................CONSTANT Sonora's Rank Sonora maintained its ranking of fifth among the six Mexican border states. Sonora's percent grade score in per capita income................... 33.3% Change in Sonora's grade....................................... 0.0% Sonora's relative position..............................CONSTANT SOURCE: UAOED estimate. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 57 Average manufacturing wage and salary income in Arizona Definition: The average wage and salary income in Arizona's manufacturing industries is a measure of how much money is paid to employees and managers in all manufacturing industries in the state. Limitations in data availability prevent us from separating wages and salaries, but nevertheless this indicator measures trends over time in the average compensation of manufacturing occupations in Arizona. Basic Facts The average annual wage and salary income in Arizona's manufacturing industries was $47,990 in 2001, a decrease of 1.0 percent since 2000. The average annual wages and salaries of all U.S. border states was $45,787 in 2001, a decrease of 2.1 percent since 2000. Leading Sectors Indicators Arizona's Trend The average annual manufacturing wage and salary income in Arizona has increased 45.6 percent since 1993. The average for all U.S. border states has increased 43.4 percent in the same time period. Arizona's Ratio (2000-2001) The ratio of Arizona's average annual wage and salary income to U.S. border states' wages and salaries changed by 1.1 percent from 2000 to 2001. Ratio of Arizona's average to U.S. border states' average..... Change in Arizona's ratio........ 104.8% 1.1% Arizona's relative position...................................IMPROVED SOURCE: BEA. 58 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Leading Sectors Indicators Average wage and salary income in Sonora's maquiladoras Definition: The average wage and salary income in Sonora's maquiladoras is a measure of how much money is paid to employees and managers in all maquiladoras in the state. Limitations in data availability prevent us from separating wages and salaries, but nevertheless this indicator measures trends over time in the average compensation of maquiladora occupations in Sonora. Basic Facts The average annual wage and salary income in Sonora's maquiladoras was $5,220 in 2001, an increase of 14.2 percent since 2000. The average annual maquiladora wages and salaries in all Mexican border states was $5,612 in 2001, an increase of 18.8 percent since 2000. Sonora's Trend The average annual wage and salary income in Sonora's maquiladoras has increased 32.9 percent since 1993. The average for all Mexican border states has increased 44.6 percent in the same time period. Sonora's Ratio (2000-2001) The ratio of Sonora's average annual wage and salary income to Mexican border states' wages and salaries decreased from 2000 to 2001. Ratio of Sonora's average to Mexican border states' average...................................... 93.0% Change in Sonora's ratio.......... 3.9% Sonora's relative position..................................DECLINED SOURCE: INEGI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 59 Unemployment Quality of Life Indicators Definition: Unemployment rate monitors the percentage of the civilian labor force defined in respective government statistics as unemployed. Although definitions differ between the U.S. and Mexico, a relative ranking allows comparison of Arizona and Sonora with the average for their respective border regions. Basic Facts The Region scored 91.7 points out of 100 with respect to unemployment rate in 2000, indicating a relatively high ranking (i.e., a relatively low unemployment rate). However, this ranking represents a decline of 9.1 percent since 1995 (i.e., in 2000 the Region had a higher unemployment rate relative to other U.S.-Mexico border states). What the Indicator Suggests Region's unemployment score........................................ 83.3% Change in Region's rank......................................... -9.1% Region's relative position...............................DECLINED SOURCES: BLS, INEGI. 60 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Unemployment Quality of Life Indicators Arizona's and Sonora's Trends Arizona continued to have the lowest unemployment rate among the four U.S. border states, 3.9 percent compared to an average of 4.4 percent for all U.S. border states in 2000. Compared to all Mexican border states, Sonora shared (with Nuevo Leon) the third lowest unemployment rate among the six Mexican border states, 1.2 percent. How Arizona and Sonora performed individually Arizona's Rank (1995-2000) Among all U.S. border states, Arizona retained the lowest unemployment rate in 2000 (and therefore the highest score). Arizona's unemployment score....................................... 100.0% Change in Arizona's rank........................................ 0.0% Arizona's relative position..............................CONSTANT Sonora's Rank (1995-2000) Sonora shared the rank of third best among the six Mexican border states in 2000, which is a decline in rank from 1995, when Sonora ranked second best. Sonora's unemployment score...................................... 66.7% Change in Sonora's rank....................................... -20.0% Sonora's relative position...............................DECLINED SOURCES: BLS, INEGI. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 61 62 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Methodology Selection of indicators The Regional Indicators were developed following a series of binational meetings involving research institutions in Arizona and Sonora as well as members of the Arizona-Mexico Commission and ComisionoraArizona, representing public and private sectors in both states. Sixty-seven indicators originally were proposed in 1998. A comprehensive list of indicators with detailed definitions, rationales, computational procedures and data sources (existing and proposed) can be found in Indicators of Progress, published by the University of Arizona Office of Economic Development (December 1998) and also available on the Internet (http://oed.arizona.edu/). The first edition of Indicators of Economic Progress (2000) presented 32 indicators as a compromise between the proposed indicators and indicators for which measurable data were actually available, i.e., comparable data for both Arizona and Sonora and for each of the remaining U.S. and Mexican border states. The current (2003) edition basically follows the previous format and presents a total of 33 indicators. In cases where state-level data were unavailable for all Mexican border states (such as exports by sector), the Arizona-Sonora Region was compared to the whole U.S.-Mexico area, instead of the U.S.-Mexico border region. Measuring a transboundary region A major challenge posed by the indicators project has been the operationalization and measurement of indicators representing Arizona and Sonora--two very different economies, with different data collection systems--as a single economic region. This was resolved partially by placing emphasis on the Region's relative position in comparison with the whole U.S.-Mexico border region. When data were directly comparable, such as dollar value of exports and gross state product, Arizona's and Sonora's values were summed and compared to the whole U.S.-Mexico border region (the sum of values for all U.S. and Mexican border states). The evaluation of progress was based on whether the Region's relative share of the whole U.S.Mexico border region increased or decreased. In cases where direct summation was inappropriate due to different population bases, such as income per capita and educational attainment of the adult population, a regional indicator was obtained through the following procedure: (1) Arizona and Sonora were ranked among their respective number of border states, i.e., Arizona on a scale from 1 to 4 and Sonora on a scale 1 to 6 (with a rank of 1 being best); (2) the individual ranks were converted to a scale of 1 to 100 to make them comparable (with a grade of 100 percent being best), i.e., for example, Arizona's second place (2 out of 4) would equal 75.0 percent and Sonora's second place (2 out of 6) would equal 83.3 percent, and (3) the Region's grade was computed as an average of Arizona and Sonora's weighted grade scores (sum of Arizona and Sonora's weighted grades divided by two). Although the Region's average grade score in any one year provides limited information, comparison over time provides a measure of relative improvement within the whole U.S.-Mexico border region. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 63 Methodology Calculation and representation of indicators Three basic methods are used to present indicators in this report: raw data, simple index numbers and percentage shares. Raw-data method The raw-data method is used to show actual volume for the indicator. For example, indicators such as exports and gross state product are shown in dollars. Other indicators, such as truck or air passenger traffic, are shown in corresponding units of measurement, i.e., number of trucks or number of passengers respectively. Raw data are presented graphically by bar charts, where the height of a bar is proportional to the actual volume. Because all bars have a common base "0" a visual comparison of their heights provides a general impression of change over time. Most data are collected on an annual basis. Whenever available, we have shown data starting with year 1993, the pre-NAFTA year, and ending with the most current year (2002 in most cases). Several indicators in the Quality of Life section are available only at 5-year intervals. Simple-index-number method Index numbers are commonly used to show variation from an arbitrary standard representing the status at some earlier time, denoted as 100. In other words, an index number is a percentage change over the base year, where the base year represents 100 percent. An index number is obtained arithmetically by dividing a quantity in a given year, Quantityn , by the quantity in the base year, Quantity0 and multiplying the result by 100, i.e.: Quantityn Simple index number = Quantity0 According to the formula in (1), if the current year value is the same as in the base year, the resulting index number will be 100. For example, if the current year's exports are the same as in the base year, the index value will be 100. An index number greater than 100 indicates that exports have increased compared to the base year, while an index value less than 100 means that exports have declined. Index numbers can be computed using a specific year as a constant base, or using the preceding year as a changing base year (or any other time unit). In this report, we selected the pre-NAFTA year of 1993 as a constant year whenever data permitted. x 100 (1) 64 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Methodology Because index numbers are relative numbers, they are independent of measurement units and thus especially appropriate for comparison of variables that have large differences in quantities. As an illustration, consider NAFTA exports. Index numbers allow us to compare changes in the export activity of the Arizona-Sonora Region, ranging between $8.6 billion (1997) and $9.7 billion (2001), with total NAFTA trade ranging between $494.9 billion (1997) and $636.9 billion (2001). Index numbers also are useful in situations where data collection methodologies or definitions in two geographic areas are not exactly the same. For example, unemployment is defined differently in Arizona and Sonora. The two sets of index numbers (one for each state, with the same base year = 100) allow us to compare unemployment trends in Arizona and Sonora irrespective of nuances in definition. An advantage of the simple-index-number method is the graphical application. The base year is always represented with a line having the value 100, and the trend is visually evaluated in reference to that line. This is especially beneficial when comparing trends in two different geographical units or for two different variables (indicators). We have used graphical presentation of index numbers to compare trends between the Arizona-Sonora Region and the whole U.S.-Mexico border region, the Arizona-Sonora Region and the whole U.S.-Mexico area as well as Arizona and Sonora. Simple index numbers easily can be converted into percentages using the expression: Percentage change (%)n/0 = index numbern/0 100 (2) For example, an index number of 118.5 means 18.5 percent change has occurred (compared to the base year), where n is the current year and 0 is the base year. We have utilized this property in the text that accompanies the graphs simply because readers may be more familiar with percentages. Percentage-share method Percentages are numbers that show relative proportions of a whole, i.e.: Quantityi Percentage share (%) = QuantitySi Where i represents one component, such as Arizona's exports, and Si represents total exports, i.e., the sum of exported products from the whole U.S. border region. We have used the percentage-share method to measure relative importance of the Arizona-Sonora Region within the whole U.S.-Mexico border region. When comparable data were not available for other border states, the Region's relative position was expressed in terms of percentage share of the whole U.S.-Mexico area. x 100 (3) REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 65 66 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Data Sources NAFTA Indicators SHARE OF EXPORTS TO NAFTA MARKETS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed February 2003. Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. Mexico data: Secretaria de Economia, Subsecretaria de Negociaciones Comerciales Internationales, based on BANXICO data. Canadian data: Statistics Canada at http://strategis.ic.gc.ca/ accessed June 2003. SHARE OF U.S.-MEXICO WORLD EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed February 2003. Mexico and Sonora data: Secretaria de Economia, Subsecretaria de Negociaciones Comerciales Internationales, based on BANXICO data. SHARE OF U.S.-MEXICO COMMODITY FLOWS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF ELECTRIC/ELECTRONIC SHIPMENTS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF MACHINERY SHIPMENTS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF PLASTIC MATERIALS SHIPMENTS VIA U.S. BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF FRESH PRODUCE IMPORT FLOWS FROM MEXICO VIA U.S.-MEXICO BORDER STATES' POE U.S. International Trade Commission, http://dataweb.usitc.gov, accessed June 2003. SHARE OF TRUCK TRAFFIC VIA U.S.-MEXICO BPOE U.S. Department of Transportation, based on U.S. Customs Service data. Regional Integration Indicators CROSS-BORDER VEHICLE TRAFFIC University of Arizona Economic and Business Research Program, based on INS and U.S. Customs Service data. PERSONS CROSSING THE BORDER University of Arizona Economic and Business Research Program, based on INS and U.S. Customs Service data. AIR PASSENGER TRAFFIC U.S. Department of Transportation International Aviation Developments Series at http://ostpxweb.ost.dot.gov/aviation/international-series/, accessed June 2003. BINATIONAL COMMISSIONS ATTENDANCE Arizona-Mexico Commission/Comision Sonora-Arizona Attendance Records, binational plenary sessions, December 1998, June 1999, June 2000, and June 2001. REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 67 Data Sources Leading Sectors Indicators SHARE OF BORDER STATES' GROSS STATE PRODUCT (GSP) U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed June 2003. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gov.mx/BDINE/H10/H100043.HTM accessed May 2003. ARIZONA EMPLOYMENT IN FOREIGN-OWNED ESTABLISHMENTS Bureau of Economic Analysis, Survey of Current Business, June 1998, August 2000, August 2001, and August 2002 issues. SONORA'S SHARE OF FOREIGN DIRECT INVESTMENT (FDI) Subsecretaria de Negociaciones Comerciales Internationales (SNCI), at http://www.economica-snci.gov.mx/Inversi_n/ Estad_sticas_inv/estad_sticas_inv.htm accessed June 2003. SHARE OF BORDER STATES' MANUFACTURING PRODUCTION U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed May 2003. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/BDINE/BANCOS.HTM accessed May 2003. SHARE OF U.S.-MEXICO MANUFACTURING EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed June 2003. Sonora 1993-1997 data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. Sonora 1998-2002 data: Mexico data: Subsecretaria de Negociaciones Comerciales Internationales (SNCI) based on BANXICO data. Mexico data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE) http:// dgcnesyp.inegi.gob.mx/BDINE/J10/J100020.HTM accessed June 2003. SHARE OF MEXICO'S MAQUILADORA EMPLOYMENT Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), Industria Maquiladora de Exportacion, http://dgcnesyp.inegi.gob.mx/BDINE/J15/J150249.HTM accessed June 2003. Note: Annual figures are the average of 12 monthly figures. SHARE OF TECHNICAL/ADMINISTRATIVE STAFF IN MAQUILADORAS Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), Industria Maquiladora de Exportacion, http://dgcnesyp.inegi.gob.mx/BDINE/J15/J150456.HTM accessed June 2003. Note: Annual figures are the average of 12 monthly figures. SHARE OF NATIONAL INPUTS IN SONORA'S MAQUILADORAS Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), Industria Maquiladora de Exportacion, http://dgcnesyp.inegi.gob.mx/BDINE/J15/J15.HTM accessed June 2003. Note: Annual figures are the average of 12 monthly figures. PRODUCTIVITY IN THE MAQUILADORA SECTOR Instituto Nacional de Estadica, Geografe Informca (INEGI), Valor Aggregado de Exportacion, at http:// dgcnesyp.inegi.gob.mx/BDINE/J15/J150099.HTM, accessed June 2003. Productivity is calculated by dividing Valor Aggregado by the total number of employees in maquiladoras in each state. 68 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 Data Sources Leading Sectors Indicators (continued) SHARE OF BORDER STATES' AGRICULTURAL PRODUCTION U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed June 2003. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/cgi-win/bdi.exe accessed May 2003. SHARE OF U.S.-MEXICO AGRICULTURAL EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed April 2002. Mexico and Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. SHARE OF U.S.-MEXICO LIVESTOCK EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed April 2002. Mexico and Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. SHARE OF BORDER STATES' MINING PRODUCTION U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed March 2002. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/pubcoy/estatal/pib/pibcor.html, accessed March 2002. SHARE OF U.S.-MEXICO MINING EXPORTS U.S. and Arizona data: Massachusetts Institute for Social and Economic Research (MISER), Origin of Movement series by NAICS, at http://www.misertrade.org accessed April 2002. Mexico and Sonora data: Centro de Investigacin Alimentaci Desarrollo (CIAD), based on data from Secretarde Comercio y Fomento Industrial (SECOFI) and Banco de Mco. TRANSPORTATION SHARE OF GSP U.S. and Arizona data: U.S. Department of Commerce, Bureau of Economic Analysis, at http://www.bea.doc.gov/bea/regional/ gsp/ accessed March 2002. Mexico and Sonora data: Instituto Nacional de Estadica, Geografe Informca (INEGI), Banco de Informacicona (BIE), at http://dgcnesyp.inegi.gob.mx/pubcoy/estatal/pib/pibcor.html, accessed March 2002. Quality of Life Indicators ADULTS WITH A COLLEGE DEGREE U.S. and Arizona data: U.S. Census Bureau, Current Population Surveys, Table 13, at http://www.census.gov/population/www/ socdemo/educ-attn.html, accessed 26 April 2001. Mexico and Sonora data: Perfil sociodemografico (INEGI, 1995) for each border state, and XII Censo General de Poblacion y Vivienda 2000 (INEGI, 2000). REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 69 Data Sources Quality of Life Indicators (continued) PER CAPITA INCOME UAOED estimate computed by dividing total state GSP by total state population (see sources for GSP and population for more information). AVERAGE MANUFACTURING WAGE AND SALARY INCOME IN ARIZONA Bureau of Economic Analysis (BEA), Annual State Personal Income, http://www.bea.gov/bea/regional/spi/, accessed June 2003. AVERAGE WAGES AND SALARY INCOME IN SONORA'S MAQUILADORAS Secretarde Comercio y Fomento Industrial (SECOFI), Banco de Informacion Sectoral, Industria Maquiladora, http:// www.secofi.gob.mx/, accessed March 2002. UNEMPLOYMENT U.S. and Arizona data: Bureau of Labor Statistics, Economy at A Glance, at http://www.bls.gov/eag/eag.map.htm, accessed 26 April 2001. Mexico and Sonora data: Perfil sociodemografico (INEGI, 1995) for each border state, and XII Censo General de Poblacion y Vivienda 2000 (INEGI, 2000). Population U.S. and Arizona data: UAOED estimates based on U.S. Census data. Population in 2000 and estimates for 1990, 1995, and 2001 from U.S. Census Bureau at http://www.census.gov/. Population for 1991-1994 interpolated from 1990 census figures and 1995 census bureau estimate, population for 1996-1999 interpolated from 1995 census bureau estimate and 2000 census figures. Mexico and Sonora data: Population for 2000 is the definitive result of the 2000 Censo General de Poblacion y Vivienda, INEGI, Informacion Por Entidad Federativa, at http://www.inegi.gob.mx/entidades/espanol/fentidades.html. Population for 2001 from Bancomer estimate, Regional Economic Report, Third Quarter 2001. Population for 1991-1994 interpolated from 1990 and 1995 census figures, population for 1996-1999 interpolated from 1995 and 2000 census figures. 70 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003 REGIONAL ECONOMIC INDICATORS: ARIZONA-SONORA REGION 2003

you wish to report:

Your comment:

Your Name:

Submit

Cancel

...

Find results with:

Searching collections:

Home Arizona-Sonora region 2003 regional economic indicators

Regional economic indicators, Arizona-Sonora region

Object Description

Description

Regional economic indicators, Arizona-Sonora region

Regional economic indicators, Arizona-Sonora region

	All
	Pages Enter page numbers or page ranges separated by commas. For example: 1,3,5-12