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So Close to Mexico: Economic Spillovers along the Texas-Mexico Border

In: Ten-Gallon Economy

Author

Listed:
  • Roberto Coronado
  • Marycruz León
  • Eduardo Saucedo

Abstract

The maquiladora industry has been a major economic engine along the US-Mexico border. For decades, economists have studied the maquiladora’s impact on border cities. Using a relatively new dataset, we estimate that impact on US border cities from 2007 to 2012. For the border region as a whole, we find that a 10 percent increase in maquiladora wages (a proxy for maquiladora activity) leads to a 1.1 to 1.5 percent increase in employment in the corresponding US border city. We also find that the average can be misleading, with differences across border cities and sectors. For instance, we find that the benefit Texas border cities receive from maquiladora activity in northern Mexico is somewhat larger than for other US border cities.

Suggested Citation

  • Roberto Coronado & Marycruz León & Eduardo Saucedo, 2015. "So Close to Mexico: Economic Spillovers along the Texas-Mexico Border," Palgrave Macmillan Books, in: Pia M. Orrenius & Jesús Cañas & Michael Weiss (ed.), Ten-Gallon Economy, chapter 12, pages 183-198, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-53017-2_12
    DOI: 10.1057/9781137530172_12
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