Offshoring and Volatility: Evidence from Mexico’s Maquiladora Industry

Paul Bergin, Robert Feenstra and Gordon Hanson

Chapter 2 in International Macroeconomic Interdependence, 2017, pp 31-44 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter addresses the question of what promotes international macroeconomic spillovers by studying the particular case of Mexico, where recessions arising in the US seem to be transmitted with amplification. This particularly strong positive comovement is associated with the rise of offshoring production, the arrangement whereby firms carry out particular stages of production abroad. Comparing employment in the offshoring sectors across countries, shocks arising in the US generate fluctuations in Mexico twice as large as in the US…

Keywords: Macroeconomics; International; Cooperation; Business Cycles; Exchange Rate; Current Account (search for similar items in EconPapers)
JEL-codes: F16 (search for similar items in EconPapers)
Date: 2017
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Journal Article: Offshoring and Volatility: Evidence from Mexico's Maquiladora Industry (2009)
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