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Maquiladora Response To U.S. And Asian Relative Wage Rate Changes

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  • LILA J. Truett
  • DALE B. Truett

Abstract

ThiS paper investigates whether the output of the Mexican maquiladoras is an alternative to production in the Pacific Rim. The analysis involves estimating supply functions for Mexican maquiladora output using relative wage data for Mexico, Singapore, and the United States. It also involves estimating the impact of relative wage rates on maquiladora output in five industries as well as on more aggregated levels. Results indicate that production in Mexico and in the Pacific Rim are substitutes, although this relationship is stronger for some industries than for others.

Suggested Citation

  • LILA J. Truett & DALE B. Truett, 1993. "Maquiladora Response To U.S. And Asian Relative Wage Rate Changes," Contemporary Economic Policy, Western Economic Association International, vol. 11(1), pages 18-28, January.
    • Handle: RePEc:bla:coecpo:v:11:y:1993:i:1:p:18-28
    DOI: 10.1111/j.1465-7287.1993.tb00368.x
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    References listed on IDEAS

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    1. Francisco L. Rivera-Batiz, 2018. "Can Border Industries Be a Substitute for Immigration?," World Scientific Book Chapters, in: Francisco L Rivera-Batiz (ed.), International and Interregional Migration Theory and Evidence, chapter 15, pages 287-297, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. William C. Gruben, 2001. "Did NAFTA really cause Mexico's high maquiladora growth?," Center for Latin America Working Papers 0301, Federal Reserve Bank of Dallas.
    2. 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.

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