This paper develops a model of ownership based on incomplete contracts, specific investments, and risk and tests the model using data on industrial subcontracting in Mexico. The choice of ownership structure involves a trade-off between minimizing holdup risk and spreading natural risk....

Trade theories based on increasing returns have two predictions for regional economies: employment concentrates in industry centers and regional nominal wages are decreasing in transport costs to industry centers. The author tests these hypotheses using data on regional manufacturing in Mexico...

Skilled immigration into rich countries and competition for talent and professional skills are of major concern among nations today. Comprehensive immigration reform addressed to illegal immigration predictably foundered in Congress last year. This revived the question of skilled immigration and...

In this paper, we examine net emigration from Mexico over the period 1960 to 2000. The data are consistent with labor supply shocks having made a substantial contribution to Mexican emigration, accounting for two-fifths of Mexican labor flows to the United States over the last two decades of the...

Does regional economic integration affect the location of economic activity inside countries? Discussed in this paper is recent academic literature on whether the movement towards free trade in North America has influenced the spatial organization of production in Canada, Mexico, or the United...