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Maquiladora Myths: Locational and Structural Change in Mexico's Export Manufacturing Industry
Authors:Ian MacLachlan  Adrian Guillermo Aguilar
Abstract:Trends in location, labor force, and procurement practices in maquiladoras are examined using recent data sources. A growing proportion of maquiladoras are selecting interior locations, south of the borderlands. Once dominated by young women, the labor force is rapidly approaching gender parity. While far below prevailing rates in the United States, maquiladora wages are comparable with equivalent manufacturing sectors in Mexico. Majority ownership of maquiladoras is split almost evenly between Mexico and the U.S., however, maquiladoras have failed to develop domestic sources of materials and parts and remain dependent on imported material inputs. As the North American Free Trade Agreement is phased in, the regulatory environment of maquiladoras will change but their role as low cost assembly specialists will persist.
Keywords:maquiladora  export manufacturing industry  in-bond industry  Mexican manufacturing  North American Free Trade Agreement
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