The Impact of the Maquiladora Industry on U.S. Border Cities

For decades, the maquiladora industry has been a major economic engine along the U.S.–Mexico border. Since the 1970s, researchers have analyzed how the maquiladora industry affects cities along both sides of the border. Hanson produced the first comprehensive study on the impact of the maquiladoras on U.S. border cities, considering the effects of in‐bond plants on both employment and wages. His estimates became useful rules of thumb for the entire U.S.–Mexico border; however, they have become dated. Using Hanson's framework, we estimate the maquiladora industry impact on U.S. border cities from 1990 to 2006. We find that a 10 percent increase in maquiladora production leads to a 0.5 to 0.9 percent increase in employment. We also find large differences among individual border cities. Furthermore, we estimate the cross‐border maquiladora impacts before and after 2001 when border security begins to rise, and the global low‐wage competition intensified after China joined the World Trade Organization. Empirical results indicate that U.S. border cities are less responsive to growth in maquiladora production from 2001 to 2006 than in the earlier period; however, when looking into specific sectors, we find that U.S. border city employment in service sectors is more responsive post‐2001.     

State Characteristics and the Locational Choice of Foreign Direct Investment: Evidence from Regional FDI in Mexico 1989–2006

ABSTRACT Despite the growing importance of foreign direct investment (FDI) in the Mexican economy, statistical evidence on the determinants of the regional distribution of foreign‐owned firms is seriously limited. In this paper, empirical findings are presented from a variety of econometric models that identify several regional characteristics influencing the locational choice of FDI. The main findings are threefold. First, several locational factors appear to be potentially important; these include regional demand, wages, schooling, infrastructure, and agglomeration economies. Second, the effect of agglomeration economies stems from several sources. In particular, the regional presence of agglomerations of manufacturing activity and of foreign‐owned manufacturing firms both have an independent positive effect on the locational decision of new FDI. Third, the locational process of maquiladora firms differs from the locational process of overall FDI. The actual findings suggest that regional demand and infrastructure, as suggested above, are not important locational factors for export‐oriented firms. Furthermore, whereas agglomeration economies from manufacturing and the presence of existing FDI attract new maquiladora investment, the presence of a regional agglomeration of services deters the location of new maquiladora firms. Finally, agglomeration economies appear to be more important in the locational process of maquiladora firms.     

Maquiladoras and U.S.‐Bound Migration in Central Mexico

Over the past one and a half decades, smaller cities and nonmetropolitan areas in Mexico have attracted manufacturing plants, led by the export manufacturing sector. Maquiladoras in particular are increasingly locating their plants in such places in the “deep interior” Mexico—outside of the border states. Using 1980 and 1990 Mexican census data for 19 growth centers and 27 high‐emigration municipios (counties) in Central Mexico, this paper suggests that foreign‐owned assembly (maquiladora) jobs decentralized significantly over the 1980s, locating closer to emigrant municipios. An examination of 17 emigrant municipios in the industrialized states of Jalisco and Guanajuato found that an emigrant municipio's accessibility to maquiladora jobs, and jobs indirectly related to maquiladora growth, was positively related to its overall employment growth, which was, in turn, negatively related to its U.S. migration rate over the decade. Although the migration reduction inherent in these relationships is relatively small, it could be accelerated by U.S. and Mexican policies giving incentives for more peripheral locations of export‐oriented and other manufacturing.     

The Impact of Trade Liberalization on Regional Disparities in Mexico

After a long period of industrialization based on import substitution (ISI), Mexico started to open up its economy by accessing the General Agreement on Tariffs and Trade (GATT) in 1986. The export‐promotion strategy was transformed into one of regional integration with the signing of the North American Free Trade Agreement (NAFTA) in 1994. The paper explores the impact of the opening of the economy on regional disparities in Mexico using σ and β‐convergence analyses. Four different samples have been employed to control for possible data bias linked to the inclusion of oil‐producing and maquiladora‐based states. The results show that whereas the final stages of the ISI period were dominated by convergence trends, trade liberalization (GATT) and economic integration (NAFTA) have led to divergence. In particular, the NAFTA period is related to divergence regardless of the type of analysis chosen and the sample used.     

Local Industry Agglomeration and New Business Activity

New businesses are highly involved in innovative activity, which enhances worker productivity and leads to increased economic output. This paper investigates the effects of industry concentration on the incidence of new business openings in the 5,504 Maine county‐industries. Empirical findings indicate that new business activity increases with the number of incumbent establishments in a county‐industry and its concentration level relative to the U.S. economy. Model simulations show that raising county‐industries, with no initial industry presence, to concentration levels similar to that of the industry in the U.S. economy results in a 1.7 to 8.9 percent increase in the expected number of business openings over a three‐year period. Empirical results also suggest that industry clusters comprised of young and small establishments are more conducive to new business formation than clusters made up of mature and large companies.     

Growth of Creative Occupations in U.S. Metropolitan Areas: A Shift‐Share Analysis

ABSTRACT This article uses a shift‐share model to investigate the growth of creative occupations in U.S. metropolitan areas during the 1990s. Empirical findings indicate that the performance of the creative economy varied widely across the U.S., and that the highest competitive growth rates of the creative workforce occurred in the Rocky Mountain, Southeast, and Southwest regions. Further analysis focused on whether high competitive workforce growth between 1990 and 2000 translated into high competitive employment growth from 1999 to 2003. The results show that many of the areas with the highest competitive growth rates of creative economy employment from 1999 to 2003 were some of the weakest regions in terms of creative workforce growth during the 1990s. This raises questions about the extent to which jobs follow people in the creative economy, and suggests that an initial strong presence in the creative economy is not a prerequisite for future growth.     

Experimental Investigation on Fluidized Drying of Zymotic Orange Peels

A fluidized drying method was used to research the drying characteristic of zymotic orange peels, and a experimental equipment of fluidized drying bed was built, the influence to the drying characteristic of drying parameters such as air temperature,air velocity, particle diameters, the height of bed layer and the initial moisture content etc, are analyzed. The results indicate that the fluidized drying method is suited to the sample with high moisture content after preprocess, and among the drying parameters, the initial moisture content, air temperature and particle diameter influenced the drying characteristic remarkably. Based on the experiential data, an experiential mathematical model is buildt up, which can provide the direction for real production in the fluidized bed.     

The Impact of Airport Noise and Proximity on Residential Property Values

The hedonic price method is used to estimate the relationship between residential property values and airport noise and proximity to the airport in the Reno‐Sparks area. Empirical results suggest there is a statistically significant negative relationship between airport noise and residential property values, with the average home in areas where noise levels are 65 decibels or high selling for about $2400 less than equivalent homes in quieter areas. However, in direct contrast to the study by Tomkins et al.(1998) who found proximity to the Manchester airport to be an amenity, this study finds proximity to the Reno‐Sparks airport to have a significant negative value.     

Residential Property Values and Community Right‐to‐Know Laws: Has the Toxics Release Inventory Had an Impact?

ABSTRACT This paper uses a cross‐sectional hedonic pricing model to investigate the relationship between the U.S. Environmental Protection Agency's (EPA) Toxics Release Inventory (TRI) data releases and the prices of single‐family residences within postal zip code areas situated in Omaha, Nebraska's Douglas County. The model employs demographic data from the 2000 Census, toxic chemical release data for the year 2000 from the EPA's TRI database, as well as other pollution variables for each of the zip code areas comprising Douglas County. The model also employs house‐specific data supplied by the Douglas County Assessor's Office on dwelling characteristics for homes sold in Douglas County in the year 2000. The findings indicate that, when controlling for relevant socioeconomic variables, TRI pollutant releases are significant determinants of residential housing values. The results should be of interest to anyone in the real estate industry, including tax assessors, appraisers, mortgage lenders, and property owners.     

The Impact of Public School Attributes on Home Sale Prices in California

The quality of public schools is often cited as an important attribute which distinguishes a community. Indeed, a recent public opinion poll conducted by the California Public Education Partnership indicates that residents rank improvements in public education higher than such high profile issues as environmental quality and crime reduction. In order to explore the role of educational quality in determining residential property values, a hedonic housing price model is used on a large sample of homes which sold within Fresno County in California over the period 1990‐1994. After controlling for a wide range of housing characteristics and neighborhood features, the findings indicate that the school district does significantly influence the real sale price. Then the relative importance of inputs into the production of educational services is investigated as compared to output measures of productivity. These findings suggest that both input and output measures are important. However, elasticity estimates of input measures tend to be higher than those of output measures, with the average class size by far the strongest influence. There is some evidence to suggest that the benefits of additional teachers likely outweigh the costs. Finally, the findings suggest that attributes of schools are more highly valued by local residents than either crime or environmental quality measures within the community.     

Public Sector Agglomeration in Developed Countries: The Role of Oversight

A small but growing body of empirical research underscores the relationship between a city's status as a political capital and its status within an urban hierarchy. Both theoretical and empirical work has attributed this to the agglomeration effects of government activity in the capital. The hypothesis of this paper is that this agglomeration is driven by distance‐based transaction costs of oversight. This hypothesis is tested using a sample of U.S. metropolitan statistical areas for the years 2001–2008. The results are consistent with the hypothesis. Specifically, the empirical results indicate that greater distance from the capital is related to lower levels of government employment and expenditure per government employee among noncapital metropolitan areas.     

The Local versus Global Dilemma of the Effects of Structural Funds

This paper extends the analysis by Dall'erba and Le Gallo dealing with the impact of structural funds on the growth process of European regions. Like most of the other 18 contributions assessing the efficiency of structural funds, our article was based on a global model of β‐convergence: one coefficient pertaining to the structural funds variable was estimated for the whole sample. In this paper, we extend this approach by performing local estimations, where one coefficient is estimated for each region, so that the impact of structural funds can be regionally differentiated. As in the previous contribution, the presence of spatial spillover effects is taken into account using spatial econometric techniques, but here we apply a Bayesian locally linear spatial estimation method on a conditional β‐convergence model, which allows global and local β‐convergence to be viewed in a continuous fashion. Our results indicate that structural funds have a weak global impact on the European Union regional growth process, but that their local impacts are very diverse, with a positive influence on the growth of British, Greek, and southern Italian regions.     

Monetary policy and regional economic performance in Mexico: A structural panel VAR approach

The aim of this article is to investigate the dynamic effects of monetary policy shocks on economic activity and aggregate price levels across Mexican states. To do this, a recursive structural panel VAR model is implemented as proposed by Pedroni which allows for regional heterogeneity and structural identifying restrictions of common monetary policy shocks. Empirical evidence suggests a common monetary policy shock to short‐term interest rates induces significant cross‐state variation in prices and output level responses. Additional analysis indicates that structural features, such as the industry mix and the small versus large firm mix, are possible sources of the observed cross‐state variation influenced by interest rates and credit channels. We conclude that the observed differentiated regional impacts are sufficiently important to justify rethinking Mexico's current monetary policy framework in order to explicitly consider a regional view.     

Forecasting Housing Investment in Developing Countries

In this paper we estimate alternative models of the growth rate of real housing investment for Japan, Korea, Taiwan, and the U.S. Pure time series models generally provide superior fit to these growth rate data both within and out of the sample period. These time series models are then used to forecast investment growth rates in other countries. The results indicate that such time series models can be used to provide reasonable accurate forecasts for other countries.     

“Moderate” Environmental Amenities and Economic Change: The Nonmetropolitan Northern Forest of the Northeast U.S., 1970‐2000

ABSTRACT Population, employment, and income changes in a region comprised of eighteen nonmetropolitan counties of Maine, New Hampshire, Vermont, and New York are described using Bureau of Economic Analysis data covering 1970 to 2000. Changes at the county level are examined as net differences using pooled cross‐section time series analysis. The specific focus of the empirical analysis is the effect that environmental amenities have in population and economic change. Empirical results indicate that a county's relative endowment of environmental amenities has positive economic change effects, but only when the county is relatively accessible as well. Further, the environmental amenity effects vary in their temporal consistency, even when accessibility is taken into account. In general, however, the reported results support the proposition that even relatively moderate environmental amenities can hold positive effects for economic change.     

Real Wages and Unemployment in Local Labor Markets: Pennsylvania MSAs, 1975-86

This paper specifies an unemployment rate model with relatively long lags on the manufacturing real wage and the level of real GNP as the independent variables. Estimates of the model for 12 MSAs in Pennsylvania over the period from 1975:2 to 1986:4 generally indicate a fairly strong positive unemployment response to lagged real wages. This is consistent with theoretical models of the labor market that hypothesize strong real wage effects during periods of aggregate supply shocks. The unique characteristics of the time period under study and the disaggregation to local labor markets might account for the fact that, in contrast to many previous empirical studies, we are able to uncover evidence of a positive real wage-unemployment relationship in U.S. time series data.     

The LEADER approach and drivers of job creation

This study investigates the links between rural development funding delivered via LEADER and job creation. Analysis is carried out using application‐level data during the 2007–2013 period in Northern Ireland. A two‐step procedure is employed to estimate a negative binomial model and correct for sample selection. Results indicate that there is a positive relationship between the number of jobs created and the amount of funds awarded, and that this depends on what Measure within Axis 3 applications are submitted under. More economic‐focused Measures, such as Farm Diversification, Business Development, and Tourism show a positive relationship between the amount of public funds and the number of jobs created. No such relationship was found for the more social, or cultural Measures. This result supports the argument that in such cases “jobs created” is not an appropriate indicator for evaluation purposes, but rather non‐economic criteria should be given priority to better suit the primary objective of such Measures. Other factors that are linked to job creation include applicant characteristics, such as its business status. In general, we find a limited connection between the process to select which applications are funded and the application characteristics most strongly associated with job creation.     

Approximating the degrees of freedom for contrasts of genotypes laid out as subplots in an alpha-design in a split-plot experiment

Alpha‐designs have become popular in cultivar trials. Analysis is based on a mixed model. As a result of imbalance, inference tests require approximate methods. This paper investigates the Type I error control of different Satterthwaite approximations for the denominator degrees of freedom of Wald‐type F‐tests and t‐tests in a two‐factorial alpha‐design with cultivars as the subplot factor and management intensities (fertilization, plant protection) as the main plot factor. Simulation results demonstrate good error control for cultivar comparison at the same intensity, with the need for an approximation which diminishes as the number of cultivars increases. By contrast, a comparison of intensities entails a more substantial departure from the nominal significance level, and this is not entirely offset by any of the approximations. The methods are demonstrated using two real data sets.     

Who leads regional industrial dynamics? “New industry creators” in Chinese regions

Recent evolutionary economic geography studies have argued that regional diversification emerges as a path‐dependent process, as regions often branch into industries that are related to its industrial structure. However, it is less clear who are creating new industries and under what regional conditions. This research seeks to fill this gap and identify “new industry creators” in regional industrial diversification. We differentiate two types of new industry formation—path‐breaking and path‐dependent—and examine whether some new industry creators are more path‐breaking than others, by incorporating two factors that have been largely overlooked in recent literature on technological relatedness—firm heterogeneity and regional institutions. Based on a firm‐level data set of China’s manufacturing industries, this paper shows that path‐breaking and path‐dependence coexist. Empirical results confirm that firm heterogeneity and regional institutions not only affect the firms’ capabilities in creating new industries, but also encourage/discourage firms to be adventurous and path‐breaking. This research implies that lagging regions can catch up with developed regions by coordinating regional resources and adjusting local institutional arrangements to attract more path‐breaking firms.     

A New Fault Location Method Based on Two Terminal Information of Self synchronous Rectification

In accordance with the high and extra high voltage long distance transmission line,this paper presents a fault location method based on two terminal information of self synchronous rectification.We adopt the long transmission line model,consider the effect of distribution capacity and can correct the sample phase angle difference in the real time btween two terminals.So that this method can avoid the fault location error owing to asynchronous message on the two terminals.Tested by a lot of simulations,the results are very satisfied.