The Effect of the Chinese Economy on Mexican Maquiladora Employment

Cota, Jorge Eduardo Mendoza

doi:10.1080/08853900903442921

Cited by 15 publications

(15 citation statements)

References 9 publications

(10 reference statements)

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“…In Table B-3 in appendix B we repeat the analysis additionally controlling for plant TFP and crude size dummies. 36 The OLS coefficients are found to be bigger. The results are robust.…”

Section: Plant Growthmentioning

confidence: 95%

“…Column 2 magnitudes indicate that a marginal change in the Chinese penetration, IM P CH, from the average of 6 % leads to a 27 % increase in probability of plant exits while a marginal change in 36 Five dummies are constructed for plant size, measured by the number of employees, for each of the ranges 1-50, 51-100, 101-500, 501-1000 and 1000+. The smallest size category is excluded from the regression.…”

Section: Plant Shutdownsmentioning

confidence: 99%

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International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras

Utar

Ruiz

2013

Journal of Development Economics

120

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Effects of the competition between the two South locations (Mexico and China) in the Northern market (U.S.) is analyzed. By employing a new plant-level data set that covers the universe of Mexican export assembly plants (maquiladoras) from 1990 to 2006 and exploiting the exogenous acceleration of Chinese imports in conjunction with the WTO accession of China, the empirical analysis reveals substantial effect of intensified Chinese competition on maquiladoras.In particular, competition from China has negative and significant impact on employment and plant growth, both through the intensive and the extensive margin, on the most unskilled labor intensive sectors of those threatened by competition from China, leading to sectoral reallocation.No major effect is found through reallocative channels within industries, but significant increases in plant productivity and skill intensity are quantified in maquiladoras attributable to competition from China. The results lend substance to field studies and anecdotal evidence on industrial upgrading in Mexican Maquiladoras in response to competition with low-wage locations such as China.

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“…In Table B-3 in appendix B we repeat the analysis additionally controlling for plant TFP and crude size dummies. 36 The OLS coefficients are found to be bigger. The results are robust.…”

Section: Plant Growthmentioning

confidence: 95%

Section: Plant Shutdownsmentioning

confidence: 99%

International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras

Utar

Ruiz

2013

Journal of Development Economics

120

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“…The relationship between the two countries appears somewhat more 10 The maquiladoras system was first introduced in the 1960s and experienced rapid expansion, especially during the late 1990s, resulting in an array of factories allocated along the Mexican border with the USA. For recent accounts of the processing trade between the two countries and the implications of the maquiladoras system for Mexico, see Bergin et al (2009), Huato (2010 and Mendoza (2010). balanced and is based mainly on vertical trade within the automotive industry, as discussed in Section IV.3.…”

Section: The Network Trade Indexmentioning

confidence: 99%

“…For recent accounts of the processing trade between the two countries and the implications of the maquiladoras system for Mexico, see Bergin et al . (), Huato () and Mendoza ().…”

mentioning

confidence: 99%

Vertical Trade Maps

Ferrarini¹

2013

Asian Economic Journal

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We develop a method to map global network production and vertical trade. Based on product‐level trade data across a matrix of 75 countries, an index measures the intensity of bilateral vertical trade and a force‐directed algorithm lays it out for visualization as a world map of production networks. Three major hubs in the global networks are identified: the USA, Germany and China–Japan. Outside Asia and apart from Mexico, mainly because of its maquiladoras network ties to the USA, we find that developing countries are not yet fully part of the global production networks.

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“…The highest concentration of lost jobs in maquiladoras was from 2000 to 2003, and there has been slow growth since, but manufacturing jobs are still at a lower level than the peak. A large segment of the population continues to suffer as a result of the negative growth in manufacturing (Mendoza, 2010). Infrastructure deficiencies like a poor educational system, and other factors like globalization and financial downturns have left the traditional low-cost maquiladora model outdated and uncompetitive (Hadjimarcou, Brouthers, McNicol & Michie, 2013).…”

Section: Introductionmentioning

confidence: 99%

Mexico Needs to Proactively Educate Maquiladora Workers

Beck¹

2013

RAE

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Mexico is not known for an outstanding public education system. Rankings are less than needed to advance the manufacturing sector and move into a more competitive high-tech model to support the needs of North America and fight off the constant threat of outsourcing. In the study described herein a clear deficiency in educating the workforce was a lack of bringing education to the industrial parks and the workforce that requires upgrading to compete on a global stage. Competitiveness and innovation are dominant themes of successful workforce improvement efforts. The government and educational institutions need to understand the limitations and restrictions of potential students and offer classes close to the workplace and, specifically, in the maquiladora industrial parks.

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The Effect of the Chinese Economy on Mexican Maquiladora Employment

Cited by 15 publications

References 9 publications

International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras

International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras

Vertical Trade Maps

Mexico Needs to Proactively Educate Maquiladora Workers

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