Regional Differences and the Economic and Social Geography of Mexico at the Beginning of the Twenty-first Century

The ability of the Mexican government to form and implement industrial policy is strongly influenced by the huge flow of funds, goods, and services between Mexico and the United States. In 1985, the total value of Mexican exports was a little more than 27 billion dollars, of which 19 percent came from maquiladoras. The typical image of maquiladoras during the 1970s and first years of the 1980s is that of simple assembly plants, in which unskilled manual labor, a low level of technology, and low salaries predominated. The broadening and deepening of the maquiladoras and of export promotion contributed to the establishment of the North American Free Trade Agreement (NAFTA), a move that increased the growth of many maquiladoras but was not a panacea for Mexican economic development. In an attempt to maintain the competitiveness of maquiladoras and other export firms, the Mexican government developed various Sectorial Programs (PROSEC) that established low taxes for some inputs.