MAQUILADORA INDUSTRY ON MEXICO'S NORTHERN BORDER

Abstract

This paper analyzes the consolidation process of maquiladora industry in Mexico's northern border, based on the expansion context of Global Value Chains (GVC) and Foreign Direct Investment (FDI) as forms of lowering production costs. Having arrangements like the North American Free Trade Agreement (NAFTA) as an institutional background, there is a growing presence of Multinational Corporations (MNCs) and the expansion of maquiladoras as a national export-led model, mainly composed by manufactures. Through socioeconomic data analysis, we demonstrate two aspects concerning the evolution of maquiladora industry in Mexico: Job creation is related to inferior wage levels with a low improvement throughout history, which may interfere on the social reproduction of labor force; It follows the rise in undocumented immigration to the United States, creating a tighter and onerous institutional response on border control as an attempt to contain the migratory flows.