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Bergin, Paul R.,
Robert C. Feenstra, and
Gordon H. Hanson. 2009. "Offshoring and Volatility: Evidence from Mexico's Maquiladora Industry."
,
99(4): 1664-71.
Show Article Details
DOI: 10.1257/aer.99.4.1664
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)
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Authors:
Bergin, Paul R. (U CA, Davis)
Feenstra, Robert C. (U CA, Davis)
Hanson, Gordon H. (U CA, San Diego)
JEL Classifications:
F14: Country and Industry Studies of Trade
F23: Multinational Firms; International Business
L24: Contracting Out; Joint Ventures; Technology Licensing
L25: Firm Performance: Size, Diversification, and Scope
L60: Industry Studies: Manufacturing: General
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
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