Total Factor Productivity Growth and Job Turnover in Mexican Manufacturing Plants in the 1990s

This paper analyzes the performance of Mexican manufacturing firms following trade liberalization within a very specific institutional setting: The North American Free-Trade Agreement (NAFTA). We compare plants' productivity growth and patterns of job creation and destruction across their relative degree of integration into foreign product markets, their access to technology, and behavior with respect to research and development. Our findings show that access to imported inputs is the more significant vehicle for productivity enhancing effects of trade openness. Investment in technology is, by far, most strongly correlated with plant productivity. Like productivity, job turnover at firm level is strongly influenced by the degree of integration in international markets, import competition, and R&D behavior.

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Year of publication:	2004
Authors:	Calderon-Madrid, Angel ; Voicu, Alexandru
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Produktivität \| Arbeitsmobilität \| Industrielle Forschung \| Aussenhandelsliberalisierung \| Beschäftigungseffekt \| Schätzung \| NAFTA-Staaten \| Mexiko \| total factor productivity \| NAFTA \| R&D \| job creation and destruction

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Series:	IZA Discussion paper series ; 993
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	378153269 [GVK] hdl:10419/20228 [Handle]
Classification:	C14 - Semiparametric and Nonparametric Methods ; g63 ; F13 - Commercial Policy; Protection; Promotion; Trade Negotiations ; D24 - Production; Capital and Total Factor Productivity; Capacity ; O54 - Latin America; Caribbean
Source:	EconStor