Mexico, a prominent liberalizer, failed to attain stellar gross domestic product (GDP) growth in the 1990s, and since … 2001 its GDP and exports have stagnated. In this paper we argue that the lack of spectacular growth in Mexico cannot be … extraordinary growth of exports and foreign domestic investment (FDI). The key to the Mexican puzzle lies in Mexico s response to …

Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a … market outcomes in Mexico. We develop a heterogeneous firm model with imperfect labor markets that captures salient features … the equilibrium with an informal sector. -- offshoring ; informal sector ; maquiladoras ; trade and labor markets ; Mexico …