THE EFFECTS OF U.S.-CHINA TRADE ON EMPLOYMENT AND WAGES IN THE U.S.-MEXICO BORDER REGION |
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| Authors: | ALYSON C. MA and ROSSITZA B. WOOSTER |
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| Affiliation: | Ma:;Assistant Professor of Economics, School of Business Administration, University of San Diego, 5998, AlcaláPark, San Diego, CA 92110-2492. Phone 619-260-2383, Fax 619-260-4891, E-mail
Wooster:;Assistant Professor of Economics, Department of Economics, Portland State University, P.O. Box 751, Portland, OR 97207, Phone 503-725.3944, Fax 503-725-3945, E-mail |
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| Abstract: | This article investigates the impact of foreign competition from China on employment and wages in four U.S.-Mexico Border counties: Santa Cruz, Arizona; San Diego, California; El Paso, Texas; and Webb, Texas. Using disaggregated industry-level data between 1992 and 2006, we find that increased trade with China is associated with significantly lower county-industry employment and wages. In contrast, and as expected, increased imports from Mexico are positively related to increased employment and wages in U.S.-Mexico border counties. The results indicate that the U.S.-Mexico supply-chain relationship related to the maquiladora industry is significantly affected by Chinese competition. Implications for policy include an increased focus on federal programs that are intended to diversify the border economy . ( JEL F13, F43, F23) |
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