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The domestic content of Mexico's maquiladora exports: A long-run perspective

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  • Juan Carlos Castillo
  • Gaaitzen de Vries

Abstract

This paper studies the domestic value-added content of exports by Mexico's maquiladoras (export-processing firms) during the period from 1981 to 2006. We combine a specific input–output table for maquiladora firms with detailed longitudinal data on outputs and inputs. Policy shifts and major currency devaluations (both taking place in 1982 and 1994) drastically altered the foreign sourcing structure of most maquila firms and conditioned their demand for domestic inputs in the years thereafter. A long-run gradual decline in aggregate domestic value added in maquiladora exports is largely accounted for by the falling domestic content within electronics manufacturing.

Suggested Citation

  • Juan Carlos Castillo & Gaaitzen de Vries, 2018. "The domestic content of Mexico's maquiladora exports: A long-run perspective," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(2), pages 200-219, February.
    • Handle: RePEc:taf:jitecd:v:27:y:2018:i:2:p:200-219
    DOI: 10.1080/09638199.2017.1353125
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    Cited by:

    1. Henning Mühlen & Octavio Escobar, 2020. "The role of FDI in structural change: Evidence from Mexico," The World Economy, Wiley Blackwell, vol. 43(3), pages 557-585, March.
    2. André Pineli & Rajneesh Narula, 2023. "Industrial policy matters: the co-evolution of economic structure, trade, and FDI in Brazil and Mexico, 2000–2015," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 399-444, June.
    3. Héctor Romero-Ramírez, 2023. "The trade dependence of Mexico and Canada towards the USA: An input-output approach (1965-1990)/La dependencia comercial de México y Canadá hacia los Estados Unidos: un enfoque de insumo-producto," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 38(2), pages 293-316.

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