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Maquiladora employment dynamics in Chihuahua City, Mexico

Author

Listed:
  • Thomas M. Fullerton
  • Torres Ruiz
  • Luis BernardoAuthor-Workplace-Name: University of Texas at E1 Pasio, USA

    (Banco de Mexico,Mexico and Unibersity of Colordado, USA)

Abstract

As exports from regions of developing economies to higher income economies grow, business cycle linkages between these areas also increase. This study applies a transfer function ARIMA methodology to the analysis of maquiladora sector employment in a non-border region of Mexico as a means for measuring its international business cycles linkages to the export market in the United States. Statistically significant payroll responses are found in response to variations in the exchange rate, domestic wage levels, foreign investment, and United States industrial production. Simulation testing is also completed as an additional means of model reliability verification. Because data requirements are not excessive, replication for other developing country markets is feasible.

Suggested Citation

  • Thomas M. Fullerton & Torres Ruiz & Luis BernardoAuthor-Workplace-Name: University of Texas at E1 Pasio, USA, 2004. "Maquiladora employment dynamics in Chihuahua City, Mexico," Journal of Developing Areas, Tennessee State University, College of Business, vol. 38(1), pages 1-17, September.
    • Handle: RePEc:jda:journl:vol.38:year:2004:issue1:pp:1-17
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    Cited by:

    1. Thomas M. Fullerton & Elías D. Saenz-Rojo & Adam G. Walke, 2017. "Yield spreads, currency movements, and recession predictability for southern border economies in the United States," Applied Economics, Taylor & Francis Journals, vol. 49(30), pages 2910-2921, June.
    2. Fullerton, Thomas M., Jr. & Barraza de Anda, Martha & Tinajero, Roberto, 2006. "Analisis Retrospectivo de la Industria Maquiladora de Exportacion en Mexico [Retrospective Analysis of the Maquiladora Export Industry in Mexico]," MPRA Paper 14666, University Library of Munich, Germany.
    3. Lila J. Truett & Dale B. Truett, 2007. "Nafta And The Maquiladoras: Boon Or Bane?," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 374-386, July.
    4. Andre Varella Mollick, 2008. "The Rise of the Skill Premium in Mexican Maquiladoras," Journal of Development Studies, Taylor & Francis Journals, vol. 44(9), pages 1382-1404.
    5. Thomas M. Fullerton, Jr. & Juan Carlos Vázquez Morales & Martha Patricia Barraza de Anda, 2011. "Dinamica de corto plazo del empleo en las maquiladoras de Reynosa, Tamaulipas," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 23-40, May.
    6. 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.
    7. Jorge Ibarra Salazar & Francisco García Pérez, 2016. "Las demandas de factores productivos en la industria maquiladora," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 31(2), pages 265-303.

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    Keywords

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    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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