Effects of the competition between the two South locations (Mexico and China) in the Northern market (U.S.) is analyzed. By employing a new plant-level data set that covers the universe of Mexican export assembly plants (maquiladoras) from 1990 to 2006 and exploiting the exogenous acceleration...

Effects of the competition between two South locations (Mexico and China) in a Northern market (U.S.) are analyzed. By employing a plant-level data set that covers the universe of Mexican export processing plants (maquiladoras) from 1990 to 2006 and relying on an instrumental variable strategy...