Maquiladora Prospects in a Global Environment
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Date
2003-10
Authors
Fullerton, Thomas M., Jr.
Barraza de Anda, Martha Patricia
Journal Title
Journal ISSN
Volume Title
Publisher
Bureau of Business Research, The University of Texas at Austin
Abstract
The Mexican in-bond assembly, or maquiladora, manufacturing sector has taken its fair share of lumps in recent years. The industry has experienced a business cycle downturn in the U.S., intermittent border closures, higher tax burdens, fiscal uncertainty, competition from offshore assembly plants in China, and national legislative gridlock. Nevertheless, with double-digit rates of expansion less likely to occur, overall prospects for maquiladora operations remain generally favorable but far from optimal.