Offshoring and Volatility: Evidence from Mexico's Maquiladora Industry

This paper studies the second-moment properties of offshoring, the arrangement whereby firms carry out particular stages of production abroad. It documents a new empirical regularity: maquiladora industries in Mexico that are associated with US offshoring experience fluctuations in employment that are twice as volatile as the corresponding industries in the United States. This finding is not attributable simply to higher volatility in the overall Mexican economy, nor to the smaller size of Mexico's industries compared to US counterparts. (JEL F14, F23, L24, L25, L60, O14)

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Year of publication:	2009
Authors:	Bergin, Paul R. ; Feenstra, Robert C. ; Hanson, Gordon H.
Published in:	American Economic Review. - American Economic Association - AEA. - Vol. 99.2009, 4, p. 1664-71
Publisher:	American Economic Association - AEA

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Extent:	application/pdf application/zip
Type of publication:	Article
Notes:	DOI: 10.1257/aer.99.4.1664
Classification:	F14 - Country and Industry Studies of Trade ; F23 - Multinational Firms; International Business ; L24 - Contracting Out; Joint Ventures ; L25 - Firm Size and Performance ; L60 - Industry Studies: Manufacturing. General ; O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008574568