European Regional Science Association
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European Regional Science Association
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The abstract for paper number 409:
Jorge Vera-Garcia, London School of Economics, London, United Kingdom
Globalisation and local production systems in Mexico: Are there benefits from economic integration?
After trade liberalisation, Mexico has passed from one protective system, oriented towards the domestic market, to two main local production systems: those producing for the national markets and those with export market orientation. The latter agglomerations are more integrated into the global system of production (GPS), specialising in some phases of the productive process. Taking evidence from an empirical research carried out in Mexican apparel agglomerations, the paper suggests that firms integrated to GPS have more gains from specialisation, knowledge and institutional support that those producing for the domestic market. In this way, it is argued that foreign benefits and the local capacity building have an important role to play in strengthening the competitive situation of an agglomeration in a global context.
Unfortunately full paper has not been submitted.