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Nafta And The Maquiladoras: Boon Or Bane?

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  • LILA J. TRUETT
  • DALE B. TRUETT

Abstract

This article examines the factors that affect the value added of the maquiladoras as a group as well as the apparel, electrical equipment, food, furniture, and motor vehicle equipment industries. It also explores the impact of the North American Free Trade Agreement (NAFTA) on the maquiladoras. The economic variables of relative wage rates, relative prices between Mexico and the United States, and U.S. real gross domestic product generally appear to have their expected effects. However, with the possible exceptions of the clothing and electrical equipment industries, this study suggests that NAFTA had either a negative impact or no effect on the maquiladoras. (JEL F14, 054)

Suggested Citation

  • 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.
    • Handle: RePEc:bla:coecpo:v:25:y:2007:i:3:p:374-386
    DOI: 10.1111/j.1465-7287.2006.00043.x
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    References listed on IDEAS

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    1. Mollick, Andre Varella & Wvalle-Vazquez, Karina, 2006. "Chinese competition and its effects on Mexican maquiladoras," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 130-145, March.
    2. Jennifer Bair, 2002. "Beyond the Maquila Model? Nafta and the Mexican Apparel Industry," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 203-225.
    3. 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.
    4. Mendoza, Jorge Eduardo & Calderon, Cuauhtemoc, 2001. "Determinantes Regionales de la Industria Maquiladora de Exportación en los Estados de la Frontera Norte [Regional determinants of the export maquiladora industry in the Northern Border states of Me," MPRA Paper 3105, University Library of Munich, Germany, revised 2001.
    5. Roberto Coronado & Thomas M. Fullerton Jr. & Don P. Clark, 2004. "Short-run maquiladora employment dynamics in Tijuana," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(4), pages 751-763, December.
    6. 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.
    7. Chiquiar, Daniel & Ramos-Francia, Manuel, 2005. "Trade and business-cycle synchronization: evidence from Mexican and U.S. manufacturing industries," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 187-216, August.
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    Cited by:

    1. Utar, Hale & Ruiz, Luis B. Torres, 2013. "International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras," Journal of Development Economics, Elsevier, vol. 105(C), pages 267-287.
    2. Fullerton, Thomas M., Jr. & Sawyer, W. Charles & Sprinkle, Richard L., 2010. "Intra-industry trade in Latin America and the Caribbean," MPRA Paper 34854, University Library of Munich, Germany, revised 2011.
    3. Truett, Lila J. & Truett, Dale B., 2010. "Globalization challenges for the Mexican textile industry," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 733-741, October.
    4. 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.

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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