The Texas‐Mexico Maquila Industry: Expectations for the future

Abstract

This research surveys the opinions of maquiladora managers along the Texas-Mexico border after the passage of the North American Free Trade Agreement (NAFTA). The anticipated growth in operations, relating to the use of Mexican labor under the provisions of the NAFTA are concerns for the maquiladora managers. The outcome of this study is compared to the results of a similar survey conducted in 1991. According to the 1991 survey by DeVito and Wambsganss (1994), managers seem to integrate NAFTA into their future plans. In Brannon and James (1994), Mexican sourcing, interior attractiveness, and the potential effects of deregulation are major considerations. The present study is a quantitative measure of the concerns expressed by the authors. The evidence presented here indicates the level of anticipated sustainable development. This study provides an ex-post NAFTA analysis and contributes to the literature in two ways. The study first indicates the managers of the staging plants along the Texas-Mexico border are less attracted than expected by Mexico's interior locations. Second, the managers do not expect to substantially increase their sales in Mexico in the next seven years despite the new opportunities offered by the NAFTA in this field.