The domestic content of Mexico's maquiladora exports: A long-run perspective

Juan Carlos Castillo and Gaaitzen de Vries

The Journal of International Trade & Economic Development, 2018, vol. 27, issue 2, 200-219

Abstract: This paper studies the domestic value-added content of exports by Mexico's maquiladoras (export-processing firms) during the period from 1981 to 2006. We combine a specific input–output table for maquiladora firms with detailed longitudinal data on outputs and inputs. Policy shifts and major currency devaluations (both taking place in 1982 and 1994) drastically altered the foreign sourcing structure of most maquila firms and conditioned their demand for domestic inputs in the years thereafter. A long-run gradual decline in aggregate domestic value added in maquiladora exports is largely accounted for by the falling domestic content within electronics manufacturing.

Date: 2018
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DOI: 10.1080/09638199.2017.1353125

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