Offshoring and Volatility: Evidence from Mexico's Maquiladora Industry-Reference-Cited by-同舟云学术

Offshoring and Volatility: Evidence from Mexico's Maquiladora Industry

Published:2009-08-01 Issue:4 Volume:99 Page:1664-1671
ISSN:0002-8282
Container-title:American Economic Review
language:en
Short-container-title:American Economic Review

Author:

Bergin Paul R¹,Feenstra Robert C¹,Hanson Gordon H²

Affiliation:

1. Department of Economics, University of California at Davis, One Shields Ave., Davis, CA 95616.

2. University of California, San Diego, 9500 Gilman Dr., MC: 0519, La Jolla, CA 92093-0519.

Abstract

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)

Publisher

American Economic Association

Subject

Economics and Econometrics

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/aer.99.4.1664

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