The Corn Price Surge: Impacts on Rural Mexico

We use an agent-based, general-equilibrium model to explore the impacts of world corn-price increases on land use and income in rural Mexico. In the model, interactions among heterogeneous agents within a local context shape both macro and microeconomic outcomes. Results suggest that subsistence activities allowed agriculture to absorb the shock, limiting the benefits of higher prices for the population while keeping deforestation pressures in check. An estimated 5.7% corn-area expansion by 2008 and wide variation across regions corresponds well with ex-post reports. Agricultural growth led to 0.02% and 3.9% increases in real income for rural households and absentee landholders, respectively.     

Relative Deprivation and School Enrolment. Evidence from Mexico

Using a large dataset (2.9 million households), we provide solid evidence of relative deprivation as being a negative correlate of school enrolment in Mexico, absolute standard of living being controlled for. This result is robust to a number of specifications, and to the use of linear and less than linear indices of relative deprivation. In addition, we find that marginal effects of relative deprivation are stronger at higher standards of living and for older children.     

Innovation and imitation: substitutes or complements?

Most of the research on imitation and innovation has focused on developed countries and examined whether imitation promotes or hinders innovation at the macro, industry and intra firm level, and the effect that this has on economic growth. Less research has been conducted about the dynamics that exist between innovation and imitation at the plant-level in developing countries, and the effect that trade policy has on this relationship. This article uses plant-level data from Mexico to analyse the dynamic relationship that exists between innovation and imitation at the microeconomic level. The empirical results suggest that in the context of a developing country, innovation and imitation complement each other and trade policy has no effect on this relationship.     

The evolution and resilience of community-based land tenure in rural Mexico

This paper examines the evolution of ejido tenure in Mexico since the 1992 constitutional and legal reforms in that country. Prior to the Mexican Revolution, communal tenure had all but disappeared, but since 1920 community-based tenure re-emerged to become the dominant tenure form in Mexico. The paper investigates ejido land tenure through an examination of ejido governance structures and the tenure rules relating to the acquisition, transfer and extinction of land and resource rights. It draws on community-level research and numerous published case studies, relevant laws, and on data describing the status of ejidos countrywide. This reveals a diverse set of practices, which in many instances depart from the rules as defined in the Agrarian Law and even in internal community regulations. Land tenure plays a critical mediating role in the inter-relationship between humans and the environment. Using the framework of resilience I examine the persistence of ejido tenure and its dynamics in the aftermath of major land policy and legal reforms. Three major ‘shocks’ are identified which are seriously challenging the resilience of ejidos. These are the 1992 legal reforms, NAFTA and the resulting out-migration from rural Mexico, and urbanization. I conclude that ejidos have generally been resilient enough to accommodate the 1992 reforms, but problems with cross-generational transfers that stem in part from labor migration, and urbanization have set ejidos on a course that could ultimately overcome all but the most resilient communities.     

The Rules for Foreign Investment in NAFTA

Abstract

The North American Free Trade Agreement (NAFTA) produced a new set of rules for foreign direct investment (FDI). These applied the principle of national treatment, with the exception of a set of explicitly excluded sectors such as energy and automobiles. NAFTA also increased transparency and applied dispute settlement provisions for FDI disputes. The improved, rules-based climate for FDI can help increase FDI in NAFTA and stimulate growth and competitiveness. The rules for FDI in NAFTA can also serve as a model for other agreements such as the OECD's multilateral agreement on investment and the emerging investment liberalization of APEC.

El tratado de libre comercio (TLC) de America del Norte produjo un nuevo conjunto de reglas para la inversión directa extranjera (IDE) en la region. En particular, en esta nueva regulación se da el tratamiento de nacional a la IDE con la excepcion de algunos sectores como la energia y los automobiles. Adicionalmente, el TLC mejoro la transparencia y los mecanismos de negociacion para la resolucion de disputas y diferencias en materia de inversión directa extranjera. Con esta nueva regulación, tambien se puede esperar un incremento en la IDE y un nuevo crecimiento y competitividad en toda la region del TLC. La nueva regulación del TLC en America del Norte, puede servir como modelo para otros acuerdos como los de inversion multilateral de la OECD y los de liberalizacion de la inversion de la APEC.

O Acordo de Livre Comércio Norte-Americano (NAFTA) produziu um novo conjunto de regras para o investimento direto estrangeiro (IDE). Essas regras aplicaram o principio do tratamento nacional, com a exceção de um conjunto de setores explicitamente excluídos tais como os setores de energia e automobilistico. O NAFTA também aumentou a transparência and aplicou provis[otilde]es para a resolução de disputas às disputas relativas ao IDE. O clima de IDE melhorado, baseado em regras, pode ajudar a aumentar o IDE no NAFTA e estimular o crescimento e a competitividade. As regras para FDI no NAFTA também podem servir de modelo para outros acordos como o acordo multilateral sobre investimento da OCDE e a para a emergente liberalização de investimentos na área da APEC.     

Professional Mexican Employees: The Essential Element in Mexican Maquiladora Quality Improvement Initiatives

ABSTRACT

As global competition continues to increase, quality is a crucial factor for firms to survive. Regarding quality in Mexican maquiladoras, Mexican professionals are suggested as the essential factor in successful quality programs. In this study, the literature related to quality in Mexico is reviewed, and propositions designed to test the main thesis are suggested. Additionally, exploratory data about professional Mexican worker perceptions of quality programs in maquiladoras are examined. Based on these results and the literature reviewed, Mexican professionals seem to hold significant promise in maximizing quality results.

RESUMEN. A medida que continúa aumentando la competencia global, la calidad se convierte en un factor de vital importancia para la supervivencia de las empresas. Con respecto a la calidad de las maquiladoras mejicanas, los programas de calidad exitosos consideran como elemento esencial del logro a sus profesionales. En este estudio examinamos la literatura relacionada a la calidad en México, ofreciendo propuestas trazadas para probar las principales tesis sugeridas. Además, también analizamos los datos exploratorios sobre la percepción que los trabajadores profesionales mejicanos tienen de los programas de calidad implantados en las maquiladoras. Con base en estos resultados y la literatura analizada, parece que los profesionales mejicanos representan una promesa importante para maximizar los resultados de la calidad.

RESUMO. A medida que a competição mundial aumenta, a qualidade passa a ser um fator primordial para a sobrevivência das empresas. Os profissionais mexicanos são considerados elementos essenciais para os programas de qualidade bem sucedidos nas maquiladoras mexicanas. Neste estudo, a literatura referente à qualidade no México é revista, e propostas para testar as principais teorias são sugeridas. Além disso, são examinados dados exploratórios sobre as percepç[otilde]es do trabalhador mexicano especializado em relação aos programas de qualidade nas maquiladoras. Com base nestes resultados e na literatura revista, os profissionais mexicanos parecem ser os responsáveis pela expressiva confiança na maximização dos resultados de qualidade.     

Women and Measures of Personnel Effectiveness

Abstract

This paper examines the maquiladoras along the Mexican border with regards to the labor force participation of women in this sector. The paper found a significant relationship between the age of the maquiladoras and industry type and their tendency to employ women. Specifically, older firms tended to be more female labor intensive as were certain industries. There was no significant relationship between gender employment intensity and rates of turnovers.     

Valuing Mangrove-Fishery Linkages – A Case Study of Campeche, Mexico

This paper explores the value of mangrove systems as a breeding and nursery habitat for off-shore fisheries, focusing on mangrove-shrimp production linkages in Campeche State, Mexico. We develop an open access fishery model to account explicitly for the effect of mangrove area on carrying capacity and thus production. From the long-run equilibrium conditions of the model we are able to establish the key parameters determining the comparative static effects of a change in mangrove area on this equilibrium. We then estimate empirically the effects of changes in mangrove area in the Laguna de Terminos on the production and value of shrimp harvests in Campeche over 1980–90. Our findings suggest that mangroves are an important and essential input into the Campeche shrimp fishery, but that the low levels of deforestation between 1980 and 1990 mean that the resulting losses to the shrimp fishery are still comparatively small. Over-exploitation of the fishery due to open access conditions remains the more pervasive threat, and without better management any long-run benefits of protecting mangrove habitat are likely to be dissipated.     

Was household internet adoption driven by the reform? Evaluation of the 2013 telecommunication reform in Mexico

In 2013 the Mexican Telecommunications and Broadcasting Reform was launched with the goal of promoting competition and access in the telecommunications sector. The aim of this paper is to evaluate whether the 2013 reform had an impact on household fixed internet adoption and to what extent Mexican households, classified into ten wealth groups, had adopted internet. For the assessment, after a revision of supply and demand Reform's measures to reduce the digital divide, data from the 2010 Census and 2015 Intercensal Survey were used to create adoption indexes using Poisson estimations. The results were analyzed by ten wealth groups, constructed on principal components based on household characteristics (type of dwelling, electricity availability, availability of drinking water, sewer system, internet and ICT devices: computer, telephone, cell phone and internet). Additionally, the impact of both indexes was validated by a difference in differences method. The results suggest a 66% overall increase in internet adoption between 2010 and 2015. The decile analysis showed considerable internet adoption in the low and middle wealth groups (deciles 2–8), while in the highest wealth groups (deciles 9–10) the impact of internet adoption has been relatively moderate. It is worth noting that internet adoption is unequally distributed, as less than 1% of households in deciles 1 to 6 had adopted internet in 2015, while nearly all of the wealthiest ten percent of households have internet access. Nevertheless the increment in internet adoption was not only the result of the reform but the combination of the broadband penetration trend and the reform together.