Maquiladoras and Standard of Living in Mexico Before and After NAFTA
This study assesses the impact across states of for-export, mostly foreign-owned manufacturing plants (commonly known as 'maquiladoras') on various measures of standard of living in Mexico, namely literacy rate, school attendance rates, housing characteristics, life expectancy, infant mortality, and an overall index of human development. The main data set used is from the population and housing censuses of 1980, 1990, and 2000. The study controls for the effect of nonmaquiladora economic activity and prior growth. To remove the endogeneity, maquiladora activity is instrumented with a measure of road transportation time to the nearest major border city in the United States. The resulting IV-TS- OLS and GLS regressions, pooled and with (state and time) fixed effects, are estimated and the results of the respective Hausman specification tests are reported. I conclude that, overall, with the inclusion of state and time effects, maquiladora activity shows no impact on the measures of standard of living analyzed, with one exception: undergraduate schooling rates.
|Date of creation:||17 Aug 2005|
|Date of revision:|
|Note:||Type of Document - zip; pages: 56. The appendix tables have many blank pages in between. Scroll down to see them all. I apologize for the inconvenience.|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aitken, Brian & Harrison, Ann & Lipsey, Robert E., 1996.
"Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States,"
Journal of International Economics,
Elsevier, vol. 40(3-4), pages 345-371, May.
- Aitken, B. & Harrison, A. & Lipsey, R.E., 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States," Papers 95-21, Columbia - Graduate School of Business.
- Brian Aitken & Ann Harrison & Robert E. Lipsey, 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States," NBER Working Papers 5102, National Bureau of Economic Research, Inc.
- Hausman, Jerry, 2015.
"Specification tests in econometrics,"
Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
- Krueger, Anne O., 1995. "Policy lessons from development experience since the Second World War," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 40, pages 2497-2550 Elsevier.
- Jim Airola & Chinhui Juhn, 2008.
"Wage Inequality in Post-Reform Mexico,"
Journal of Income Distribution,
Journal of Income Distribution, vol. 17(1), pages 110-134, March.
- Robert C. Feenstra & Gordon H. Hanson, 1996.
"Globalization, Outsourcing, and Wage Inequality,"
NBER Working Papers
5424, National Bureau of Economic Research, Inc.
- Zadia M. Feliciano, 2001. "Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment," ILR Review, Cornell University, ILR School, vol. 55(1), pages 95-115, October.
- Jere R. Behrman & Nancy Birdsall & Miguel Székely, 2001.
"Pobreza, Desigualdad, y Liberalización Comercial y Financiera en América Latina,"
IDB Publications (Working Papers)
7636, Inter-American Development Bank.
- Jere R. Behrman & Nancy Birdsall & Miguel Székely, 2001. "Pobreza, Desigualdad, y Liberalización Comercial y financiera en América Latina," Research Department Publications 4262, Inter-American Development Bank, Research Department.
- Brown, D.K. & Deardorff, A.V. & Stern, R.M., 1991.
"A North American Free Trade Agreement: Analytical Issues and A Computational Assessment,"
289, Research Seminar in International Economics, University of Michigan.
- Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 1992. "A North American Free Trade Agreement: Analytical Issues and a Computational Assessment," The World Economy, Wiley Blackwell, vol. 15(1), pages 11-30, 01.
- William Easterly & Norbert Fiess & Daniel Lederman, 2003. "NAFTA and Convergence in North America: High Expectations, Big Events, Little Time," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2003), pages 1-53, August.
- Grossman, G.M & Krueger, A.B., 1991.
"Environmental Impacts of a North American Free Trade Agreement,"
158, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, Gene & Krueger, Alan B, 1992. "Environmental Impacts of a North American Free Trade Agreement," CEPR Discussion Papers 644, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Alan B. Krueger, 1991. "Environmental Impacts of a North American Free Trade Agreement," NBER Working Papers 3914, National Bureau of Economic Research, Inc.
- Ramirez, Miguel D., 2003. "Mexico under NAFTA: a critical assessment," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(5), pages 863-892.
- Gordon H. Hanson & Ann Harrison, 1999. "Trade Liberalization and Wage Inequality in Mexico," ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
- William C. Gruben, 2001. "Was NAFTA behind Mexico's high maquiladora growth?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q III, pages 11-21.
- Cesar Patricio Bouillon & Arianna Legovini & Nora Lustig, 2003. "Rising Inequality in Mexico: Household Characteristics and Regional Effects," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 112-133.
- Leslie Young & Jose Romero, 1991. "A dynamic dual model of the Free Trade Agreement," Proceedings, Federal Reserve Bank of Dallas, pages 25-37.
- repec:fth:michin:289 is not listed on IDEAS
- Magnus Blomstrom & Edward N. Wolff, 1989.
"Multinational Corporations and Productivity Convergence in Mexico,"
NBER Working Papers
3141, National Bureau of Economic Research, Inc.
- Blomstrom, Magnus & Wolff, E.N., 1989. "Multinational Corporations And Productivity Convergence In Mexico," Working Papers 89-28, C.V. Starr Center for Applied Economics, New York University.
- Gordon H. Hanson, 2003. "What Has Happened to Wages in Mexico since NAFTA?," NBER Working Papers 9563, National Bureau of Economic Research, Inc.
- Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
- Esquivel, Gerardo & Rodriguez-Lopez, Jose Antonio, 2003. "Technology, trade, and wage inequality in Mexico before and after NAFTA," Journal of Development Economics, Elsevier, vol. 72(2), pages 543-565, December.
- Timothy J. Kehoe, 1992. "Modeling the dynamic impact of North American free trade," Working Papers 491, Federal Reserve Bank of Minneapolis.
- Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S20-43, July.
- Alarcon, Diana & Zepeda, Eduardo, 1998. "Employment trends in the Mexican manufacturing sector," The North American Journal of Economics and Finance, Elsevier, vol. 9(2), pages 125-145, December.
- Buitelaar, Rudolf M. & Perez, Ramon Padilla, 2000. "Maquila, Economic Reform and Corporate Strategies," World Development, Elsevier, vol. 28(9), pages 1627-1642, September.
- Blomstrom, Magnus & Persson, Hakan, 1983. "Foreign investment and spillover efficiency in an underdeveloped economy: Evidence from the Mexican manufacturing industry," World Development, Elsevier, vol. 11(6), pages 493-501, June.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpdc:0508006. 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: (EconWPA)
If references are entirely missing, you can add them using this form.