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Do border economies generate comparative advantages for small- and medium-sized enterprises? Evidence from the Maquiladora industry

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  • Sander, Birgit

Abstract

Maquiladora assembly emerged to solve a specific problem in a specific region. In the mid 1960s, it was designed to absorb unemployment and to foster industrialization at the US-Mexican border. In the course of its development, it developed considerable dynamics with respect to both regional distribution and technological diversification. Beyond initial intentions, maquiladora assembly proved to be a powerful instrument to foster modernization and international integration of the Mexican economy. Maquiladora assembly is based on factor price differentials and a favourable location with respect to the US-market. It has been developed by private agents learning to tap these potentials. They successfully intensified labour division among themselves. Most importantly, they invented so-called Shelter Plan arrangements as privately marketed services to overcome risk barriers to international integration. A passive, i.e. liberal stance of economic policy proved to be supportive. The implication for economic policy in transformation economies is that an adequate assignment of responsibilities among market and state is at least as important as efficient labour division among private agents.

Suggested Citation

  • Sander, Birgit, 1997. "Do border economies generate comparative advantages for small- and medium-sized enterprises? Evidence from the Maquiladora industry," Kiel Working Papers 806, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:806
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    4. Schmidt, Klaus-Dieter, 1996. "Small and medium sized enterprises (SMEs) in international business: A survey of recent literature," Kiel Working Papers 721, Kiel Institute for the World Economy (IfW Kiel).
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    Cited by:

    1. Gerling, Katja & Schmidt, Klaus-Dieter, 2000. "Zur Arbeitsteilung zwischen Regionen: Das nordöstliche Brandenburg aus der Sicht der regionalökonomischen Theorie," Kiel Working Papers 965, Kiel Institute for the World Economy (IfW Kiel).
    2. Stoyan Totev, 1999. "Structural Changes during Transition: Prerequisites for Integration and Economic Cooperation," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 28-58.
    3. Sander, Birgit & Schmidt, Klaus-Dieter, 1998. "Wirtschaftliche Perspektiven von Grenzregionen: ein internationaler Vergleich," Open Access Publications from Kiel Institute for the World Economy 1785, Kiel Institute for the World Economy (IfW Kiel).
    4. Engel, Dirk, 1999. "Der Einfluß der Grenznähe auf die Standortwahl von Unternehmen: Eine theoretische Analyse und empirische Befunde für Ostdeutschland," ZEW Discussion Papers 99-18, ZEW - Leibniz Centre for European Economic Research.
    5. Gerling, Katja & Schmidt, Klaus-Dieter, 1998. "Emerging East-West corporate networks in Central European border regions: Some theoretical arguments and stylized facts," Kiel Working Papers 852, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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