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Maquiladora Employment Dynamics in Nuevo Laredo

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  • JES�S CA�AS
  • THOMAS M. FULLERTON
  • WM. DOYLE SMITH

Abstract

The Nuevo Laredo maquiladora sector has grown enormously during the last two decades. The short-term time series characteristics of this portion of the regional economy are analyzed in an attempt to quantify the trends underlying this remarkable performance. Parameter estimation is accomplished via linear transfer function (LTF) analysis. Data are drawn from the January 1990-December 2000 sample period. Empirical results indicate that real wage rates, maquiladora plants, U.S. industrial activity, and the real exchange rate of the peso play significant roles in determining month-to-month fluctuations in maquiladora employment. Furthermore, sub-sample forecast simulation exercises are conducted as an additional means for verifying model reliability. Empirical results indicate that the forecasts generated with the LTF model are less accurate than those associated with a simple random walk procedure for twelve separate step-length periods. Copyright 2007 Blackwell Publishing.

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 38 (2007)
Issue (Month): 1 ()
Pages: 23-38

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Handle: RePEc:bla:growch:v:38:y:2007:i:1:p:23-38

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815

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Cited by:
  1. Fullerton, Thomas M., Jr. & Vazquez Morales, Juan Carlos & Barraza de Anda, Martha P., 2010. "Dinámica de corto plazo del empleo en las maquiladoras de Reynosa, Tamaulipas
    [Short-run dynamics of payrolls in the maquiladora sector of Reynosa, Tamaulipas (Mexico)]
    ," MPRA Paper 34925, University Library of Munich, Germany, revised 15 Feb 2011.
  2. Mollick, André Varella, 2009. "Employment Responses of Skilled and Unskilled Workers at Mexican Maquiladoras: The Effects of External Factors," World Development, Elsevier, vol. 37(7), pages 1285-1296, July.
  3. Thomas M. Fullerton Jr. & George Novela, 2010. "Metropolitan Maquiladora Econometric Forecast Accuracy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 124-140, September.
  4. Fullerton, Thomas M., Jr. & Walke, Adam G., 2012. "Border zone mass transit demand in Brownsville and Laredo," MPRA Paper 42990, University Library of Munich, Germany.

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