Advanced Search
MyIDEAS: Login

Did NAFTA really cause Mexico's high maquiladora growth?

Contents:

Author Info

  • William C. Gruben
Registered author(s):

    Abstract

    Although Mexico's maquiladora or in-bond plant system is an important and well-recognized component of Mexico-U.S. trade, the connection between the acceleration in maquiladora growth and NAFTA is less clearly understood. A broad cross-section of maquiladora observers - including journalists, political activists, industry analysts, and professors -- argue that Mexico's maquiladoras have been strongly influenced by NAFTA and have grown rapidly as a result. There are reasons to wonder if these conjectures are correct. I test for the contribution of NAFTA to fluctuations in maquiladora employment and find evidence that no such connection exists. Instead, maquiladoras post-NAFTA growth is connected to changes in Mexican wages relative to those in Asia and in the United States, and to fluctuations in U.S. industrial production. Indeed, for ever 1 percent change in U.S. industrial production I find a change in maquiladora employment of between 1.2 and 1.3 percent. This connection is consistent with declining maquiladora employment in 2001, as U. S. industrial production has fallen, but is not consistent with the NAFTA-caused-maquiladora growth story typically found in newspapers and magazines. ; Economic Research Working Paper 0106

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dallasfed.org/assets/documents/research/claepapers/2001/lawp0103.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Federal Reserve Bank of Dallas in its series Center for Latin America Working Papers with number 0301.

    as in new window
    Length:
    Date of creation: 2001
    Date of revision:
    Handle: RePEc:fip:feddcl:0301

    Contact details of provider:
    Email:
    Web page: http://www.dallasfed.org/
    More information through EDIRC

    Order Information:
    Email:

    Related research

    Keywords: International trade ; North American Free Trade Agreement ; Mexico ; Maquiladora;

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Emily Blanchard, 2006. "Reevaluating the Role of Trade Agreements: Does Investment Globalization Make the WTO Obsolete?," CESifo Working Paper Series 1735, CESifo Group Munich.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:fip:feddcl:0301. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Delia Rodriguez).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.