While outsourcing of production from the U.S. to Mexico has been hailed in Mexico as a valuable engine of growth … literature to study the second moment properties of outsourcing. We begin by documenting a new stylized fact: the maquiladora … outsourcing industries in Mexico experience fluctuations in value added that are roughly twice as volatile as the corresponding …

vertical integration and different performance margins. Outsourcing facilitates access to cutting-edge technology and the use …. Together, these effects highlight a crucial tradeoff: while outsourcing is associated with higher levels of initial performance …