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/lp/american-economic-association/offshoring-and-volatility-evidence-from-mexico-s-maquiladora-industry-yoTH2XDO0x
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- Publisher
- American Economic Association
- Copyright
- Copyright © 2009 by the American Economic Association
- Subject
- Shorter Papers
- ISSN
- 0002-8282
- DOI
- 10.1257/aer.99.4.1664
- Publisher site
- See Article on Publisher Site
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)
Journal
American Economic Review – American Economic Association
Published: Sep 1, 2009