ABSTRACT

This chapter examines the maquiladora industry in the large interior city of Guadalajara to see where the local linkages are strong, where they are tenuous and how the public sector could increase the local linkages. The policy recommendations in the final section are based on the notion that the public sector can play a role in augmenting these local transaction networks. Until the 1930s, Guadalajara was a commercial center serving the large landowners in the surrounding agricultural region. Monterrey is a city of heavier industry and more conflictive labor relations than Guadalajara. It is Mexico's second largest industrial city and the leading producer of metal and glass for the internal market. In the case of Guadalajara, the maquiladoras with greatest local inputs are part of the endogenous crafts sector, mainly small, locally owned plants producing shoes, clothing, furniture, jewelry and toys. The foreign owned and initiated maquiladoras remain largely integrated to their US supplier networks, despite the interior location.