What have been the impacts of the maquiladora program in Mexico?

What have been the impacts of the maquiladora program in Mexico?

The maquiladora industry has become an integral part of the eco- nomic and social structure of the entire United States-Mexico border. The diverse factories have brought industrialization to the region and have played a major role in fueling the population growth of com- munities along the border.

What effect have maquiladora factories had on Mexican border towns?

in maquiladora production in Mexican border cities leads to a 1.1 to 2.0 percent increase in total employment on neighboring cities on the U.S. side of the border. 8 Hanson original estimates are bigger (from 0.15 percent to 0.3 percent) and statistically significant. wages is smaller than the impact on employment.

What has been a negative effect of the maquiladoras?

Maquiladora workers reported similar incidences of depression and lack of control over life. Electronics workers, especially, had lower incidences of nervousness and functional impediments, after controlling for other confounders. Also, maquiladora work did not add an extra health burden compared with non-wage earners.

What are the maquiladoras of northern Mexico?

Maquiladoras (also known as “twin plants”) are manufacturing plants in Mexico with the parent company’s administration facility in the United States. Maquiladoras allow companies to capitalize on the less expensive labor force in Mexico and also receive the benefits of doing business in the United States.

How have maquiladoras affected Mexican economy?

Last year, 3,527 maquiladora plants employed about 1.2 million workers, accounting for more than $40 billion of finished products shipped out of Mexico. Instead, the slumping economy that followed has caused the liquidation of 300 maquiladoras, the loss of 204,000 jobs and the slowdown of Mexican economic growth.

How do maquiladoras affect migration?

Maquiladoras facilitate workers’ migration by helping them to obtain docu- ments. Higher wages are the greatest motivator of labor migration, and are reinforced by age discrimination and a lack of labor law enforcement.

How has Nafta affected the manufacturing sector in Mexico?

Following the NAFTA agreement, preferential trading with Mexico made it profitable for U.S. and multinational companies to manufacture goods in America, as these could then be exported throughout North America without tariffs. This allowed Mexico to diversify its export economy and shift away from oil significantly.

How have maquiladoras affected the US economy?

Maquiladoras in the end are good for business. They allow Mexico’s economy to increase and improve the overall quality of life for those working in them. Yes, they improve the United States economy as well. Although they can decrease job growth, they increase more than decrease.

Why are maquiladoras important to the national economy?

The development of the maquiladora industry in Mexico occupies a very important place in the structure of the country’s economy. Considered as a sector, it contributes to most of Mexico’s non-oil exports and represents a pole of growth and dynamism of the nation’s non-financial sector.