The Economic Impact of the Mexico-California Relationship
This report presents an analysis of the economic impact of the Mexico-California relationship. The report analyzes the benefits and costs that the immigrant and native-born Latino populations of Mexican origin contribute to the California economy. The Economic Impact of the Mexico-California Relationship also presents an analysis of the Mexico-California relationship related to commerce, investment and expenditures, and tourism. The report is based on the most recent, publicly available information from government, private and higher education institutions from both the U.S. and Mexico.
The Mexican-origin population in California comprises approximately 25% of the total state population. Primarily concentrated in the regions of Southern California and the San Joaquin Valley, at nearly 9 million people, 3.7 million (43%) are foreign-born and almost five million are native-born (47%). The Mexican foreign-born population, which comprises documented and undocumented individuals, has an estimated purchasing power of $51 billion compared to $57 billion of the native-born population. Together, they account for almost 10% of the total California purchasing power and 57% of the total California Latino purchasing power.
The fiscal cost to the state of California related to immigration from Mexico is approximately $179 million per year. Yet, the state's relationship with Mexico is complex and it is important to consider both the impact of immigration as well as the economic benefits of California's main trading partner. Mexico ranks as the largest market for exports of California-made goods. The Mexico-California commercial relationship in 2002 was worth approximately $36 billion, representing approximately 7% of the total bilateral commercial activity between the U.S. and Mexico. Moreover, approximately 177,000 jobs (17% of all export-supported jobs in California) are related to the commercial relationship with Mexico.
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Cortina, J., de la Garza, R., Bejarano, S., Wainer, A. (2005). The Economic Impact of the Mexico-California Relationship. Los Angeles: The Tomás Rivera Policy Institute. Retrieved from https://socialinnovation.usc.edu/special-initiatives/tomas-rivera-policy-institute/PDFs/mex_cal.pdf