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

46 Pages Posted: 10 Feb 2004

See all articles by Ángel Calderón-Madrid

Ángel Calderón-Madrid

El Colegio de Mexico

Alexandru Voicu

City University of New York (CUNY) - College of Staten Island; IZA Institute of Labor Economics

Date Written: January 2004

Abstract

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.

Keywords: total factor productivity, NAFTA, R&D, job creation and destruction

JEL Classification: C14, D24, F13, G63, O54

Suggested Citation

Calderón-Madrid, Ángel and Voicu, Alexandru, Total Factor Productivity Growth and Job Turnover in Mexican Manufacturing Plants in the 1990s (January 2004). IZA Discussion Paper No. 993, Available at SSRN: https://ssrn.com/abstract=494244

Ángel Calderón-Madrid

El Colegio de Mexico ( email )

Mexico DF 01000
Mexico

Alexandru Voicu (Contact Author)

City University of New York (CUNY) - College of Staten Island ( email )

NY
United States
718-982-2899 (Phone)

HOME PAGE: http://www.library.csi.cuny.edu/~pep/voicu.htm

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 527 (Phone)
+49 228 38 94 510 (Fax)

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