Contorting transformations: Uneven impacts of the U.S.–Mexico automotive industrial complex

2021 ◽  
pp. 102452942110454
Author(s):  
Mateo Crossa
Keyword(s):  
Regional Development ◽  
Value Added ◽  
Economic Restructuring ◽  
The United States ◽  
Industrial Complex ◽  
Production Chain ◽  
Automotive Production ◽  
Manufacturing Platform ◽  
Industrial Landscapes ◽  
The U.S

Contrary to the triumphalist rhetoric that describes the automotive industry as a lever for both regional development in North America and industrial upgrading in Mexico, this article argues that the formation of the Mexico–U.S. automotive complex has instead been consolidated on the basis of longstanding processes of uneven regional development. To make this argument, the paper examines how global economic restructuring, trade policies, domestic economic development processes, transnational firm decision making and the maintenance of the geopolitical border have reproduced extreme wage differences between the United States and Mexico, resulting in the creation of a regional automotive sector that is both highly integrated and highly unequal. In this scenario, both nations are home to profoundly different industrial landscapes: the U.S. hosts the highest value-added links of the production chain, monopolizing processes of innovation and scientific and technological knowledge production, while in contrast, Mexico manufactures the most labour intense and lowest value-added links of the automotive production chain. From this perspective, the Mexican economy can be essentially understood as an export manufacturing platform which derives its ‘competitiveness’ from the aggressive industry maintenance of low wages.

scholarly journals The Fall of the Labor Share and the Rise of Superstar Firms*

2020 ◽  
Vol 135 (2) ◽  
pp. 645-709 ◽  
Author(s):  
David Autor ◽  
David Dorn ◽  
Lawrence F Katz ◽  
Christina Patterson ◽  
John Van Reenen
Keyword(s):  
Value Added ◽  
The United States ◽  
Market Concentration ◽  
Technological Changes ◽  
Labor Share ◽  
Economic Census ◽  
New Interpretation ◽  
Labor's Share ◽  
The U.S ◽  
Number Of Firms

Abstract The fall of labor’s share of GDP in the United States and many other countries in recent decades is well documented but its causes remain uncertain. Existing empirical assessments typically rely on industry or macro data, obscuring heterogeneity among firms. In this article, we analyze micro panel data from the U.S. Economic Census since 1982 and document empirical patterns to assess a new interpretation of the fall in the labor share based on the rise of “superstar firms.” If globalization or technological changes push sales toward the most productive firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar firms, which have high markups and a low labor share of value added. We empirically assess seven predictions of this hypothesis: (i) industry sales will increasingly concentrate in a small number of firms; (ii) industries where concentration rises most will have the largest declines in the labor share; (iii) the fall in the labor share will be driven largely by reallocation rather than a fall in the unweighted mean labor share across all firms; (iv) the between-firm reallocation component of the fall in the labor share will be greatest in the sectors with the largest increases in market concentration; (v) the industries that are becoming more concentrated will exhibit faster growth of productivity; (vi) the aggregate markup will rise more than the typical firm’s markup; and (vii) these patterns should be observed not only in U.S. firms but also internationally. We find support for all of these predictions.

scholarly journals Economic Contributions of the Green Industry in the United States in 2007–08

2011 ◽  
Vol 21 (5) ◽  
pp. 628-638 ◽  
Author(s):  
Alan W. Hodges ◽  
Charles R. Hall ◽  
Marco A. Palma
Keyword(s):  
United States ◽  
Building Materials ◽  
Value Added ◽  
The United States ◽  
Total Output ◽  
Full Time ◽  
Regional Economic ◽  
Green Industry ◽  
Total Sales ◽  
The U.S

Economic contributions of the green industry in each state of the United States were estimated for 2007–08 using regional economic multipliers, together with information on horticulture product sales, employment, and payroll reported by the U.S. Economic Census and a nursery industry survey. Total sales revenues for all sectors were $176.11 billion, direct output was $117.40 billion, and total output impacts, including indirect and induced regional economic multiplier effects of nonlocal output, were $175.26 billion. The total value added impact was $107.16 billion, including employee compensation, proprietor (business owner) income, other property income, and indirect business taxes paid to state/local and federal governments. The industry had direct employment of 1.20 million full-time and part-time jobs and total employment impacts of 1.95 million jobs in the broader economy. The largest individual industry sectors in terms of employment and value added impacts were Landscaping services (1,075,343 jobs, $50.3 billion), Nursery and greenhouse production (436,462 jobs, $27.1 billion), and Building materials and garden equipment and supplies stores (190,839 jobs, $9.7 billion). The top 10 individual states in terms of employment contributions were California (257,885 jobs), Florida (188,437 jobs), Texas (82,113 jobs), North Carolina (81,113 jobs), Ohio (79,707 jobs), Pennsylvania (75,604 jobs), New Jersey (67,993 jobs), Illinois (67,382 jobs), Georgia (66,042 jobs), and Virginia (58,677 jobs). The total value added of the U.S. green industry represented 0.76% of U.S. Gross Domestic Product (GDP) in 2007, and up to 1.60% of GDP in individual states. On the basis of a similar previous study for 2002 (Hall et al., 2006), total sales of horticultural products and services in 2007–08 increased by 3.5%, and total output impacts increased by 29.2%, or an average annual rate of 5.8% in inflation-adjusted terms.

scholarly journals An Economic Analysis of the Greenhouse, Nursery, and Sod Sector in the United States

HortScience ◽  
2003 ◽  
Vol 38 (1) ◽  
pp. 128-130 ◽  
Author(s):  
Edmund M. Tavernier ◽  
Robin G. Brumfield
Keyword(s):  
United States ◽  
Economic Analysis ◽  
Economic Activity ◽  
Value Added ◽  
The United States ◽  
Farm Income ◽  
Agricultural Policies ◽  
Economic Sectors ◽  
The Impact ◽  
The U.S

The greenhouse, nursery, and sod (GNS) sector in the United States accounted for $10 billion in gross sales or 5% of gross farm receipts, in 1998. Despite its significant economic contributions, the sector receives little attention from policymakers. Part of the problem lies in the absence of empirical economic analysis that addresses the impact of the sector on the U.S. economy. The absence of such analysis places the sector at a disadvantage when agricultural policies are designed to address agricultural imbalances, such as farm income problems, and hinders the ability of the sector to lobby for policies favorable to GNS producers. This study provides estimates of the economic impacts of the GNS sector on the U.S. economy and quantifies the linkages between the GNS sector and other economic sectors. The results show that the sector contributed over $26 billion and $17 billion in output and value added economic activity, respectively, and over 438,000 jobs.

Protectionism, usmca and its Possible Effects on Mexico’s Automotive Industry

2020 ◽  
Vol 7 (1) ◽  
pp. 81-104
Author(s):  
Elisa Dávalos
Keyword(s):  
Automotive Industry ◽  
Value Added ◽  
Value Chains ◽  
Rules Of Origin ◽  
The North ◽  
Cheap Labour ◽  
The World ◽  
Automotive Production ◽  
The Government ◽  
The U.S

Mexico’s integration into the North American regional automotive industry is an outcome of nafta. This brought about Mexico´s insertion into regional value chains in the global automotive industry. The country now ranks as the seventh largest producer in the world owing to its attractiveness for foreign direct investment, cheap labour and proximity to the U.S. market. The nafta renegotiation and the emergence of the usmca resulted in a series of modified and stricter rules of origin. Among them, is a clause aimed at Mexico requiring that a percentage of labour content be paid more than $16 an hour. This article sustains that this clause will not really be a constraint for transnational auto companies’ desire to continue their investments and production of cars in Mexico. Rather, what could exclude Mexico from the international automotive production circuits is the upcoming technological change. In view of that, it is crucial that the government take steps to support the automotive innovation developments and the industry´s higher value-added phases.

Review of Current ICT Developments

2009 ◽  
pp. 1-21
Author(s):  
S.C. Lenny Koh ◽  
Stuart Maguire
Keyword(s):  
Customer Service ◽  
Economies Of Scale ◽  
Raw Materials ◽  
Value Added ◽  
The United States ◽  
Business Environments ◽  
The United Kingdom ◽  
Development Spending ◽  
The U.S ◽  
Roll Out

The issues that are currently affecting all managers are similar to those facing managers of ICT. The following is a list, though not exhaustive, of the issues confronting organizations in changing business environments as shown in Figure 1.1. Most organizations are conducting their business in global situations that place extra pressure on their effective usage of ICT. They may have to think in terms of worldwide purchasing of parts and raw materials. Many organizations view their products as being global. Firms will have to ensure that they can provide efficient supply chain management. This may require an integrated customer service where geographical boundaries should not cause loss of business effectiveness. Companies may need to provide rationalised manufacturing as they roll-out products worldwide. All organizations will strive to gain global economies of scale. However, as one can imagine developing an ICT strategy that is able to stand the test of time is well nigh impossible. In 2008 large firms in the ICT sector, such as Google, I.B.M., H.P. and Sun are rolling out major green initiatives to reflect current environmental concerns. It is not too long ago that the ICT sector was monopolised by the United States and the United Kingdom. Increasingly sector pundits are talking of the Chindia phenomenon. ICT research and development spending in China is still behind the U.S. but ahead of Japan. Firms in India, such as Infosys, are increasingly moving into the high value-added part of the sector.

scholarly journals Vocabulary challenges with invasive species data sharing

2018 ◽  
Vol 2 ◽  
pp. e25642
Author(s):  
Annie Simpson
Keyword(s):  
Invasive Species ◽  
Native Species ◽  
Value Added ◽  
Application Programming Interface ◽  
The United States ◽  
United States Geological Survey ◽  
Global Biodiversity Information Facility ◽  
Darwin Core ◽  
Biodiversity Information ◽  
The U.S

Biodiversity Information Serving our Nation - BISON (bison.usgs.gov) is the U.S. node to the Global Biodiversity Information Facility (gbif.org), containing more than 375 million documented locations for all species in the U.S. It is hosted by the United States Geological Survey (USGS) and includes a web site and application programming interface for apps and other websites to use for free. With this massive database one can see not only the 15 million records for nearly 10 thousand non-native species in the U.S. and its territories, but also their relationship to all of the other species in the country as well as their full national range. Leveraging this huge resource and its enterprise level cyberinfrastructure, USGS BISON staff have created a value-added feature by labeling non-native species records, even where contributing datasets have not provided such labels. Based on our ongoing four-year compilation of non-native species scientific names from the literature, specific examples will be shared about the ambiguity and evolution of terms that have been discovered, as they relate to invasiveness, impact, dispersal, and management. The idea of incorporating these terms into an invasive species extension to Darwin Core has been discussed by Biodiversity Information Standards (TDWG) working group participants since at least 2005. One roadblock to the implementation of this standard's extension has been the diverse terminology used to describe the characteristics of biological invasions, terminology which has evolved significantly over the past decade.

The Uncertain Connection: Free Trade and Rural Mexican Migration to the United States

1993 ◽  
Vol 27 (3) ◽  
pp. 484-512 ◽  
Author(s):  
Wayne A. Cornelius ◽  
Philip L. Martin
Keyword(s):  
United States ◽  
Free Trade ◽  
Economic Restructuring ◽  
Trade Agreement ◽  
The United States ◽  
Mexican Migration ◽  
Agricultural Producers ◽  
Population Movements ◽  
Rural Mexico ◽  
The U.S

Will a North American Free Trade Agreement (NAFTA) decrease Mexican migration to the United States, as the U.S. and Mexican governments assert, or increase migration beyond the movement that would otherwise occur, as NAFTA critics allege? This article argues that it is easy to overestimate the additional emigration from rural Mexico owing to NAFTA-related economic restructuring in Mexico. The available evidence suggests four major reasons why Mexican emigration may not increase massively, despite extensive restructuring and displacement from traditional agriculture. First, many rural dwellers in Mexico already have diversified their sources of income, making them less dependent on income earned from producing agricultural commodities like corn that will be most affected by NAFTA. Second, a free trade zone might induce more U.S. agricultural producers to expand in Mexico during the 1990s, creating additional jobs there instead of in the United States. Third, the links between internal migration in Mexico and emigration from Mexico are not as direct as is often assumed; even if economic restructuring increases internal population movements in Mexico, this may not translate into a great deal of international emigration. Finally, European experience teaches that free trade and economic integration can be phased-in in a manner which does not produce significant emigration, even under a freedom of movement regime. NAFTA-related economic displacement in Mexico may yield an initial wave of migration to test the U.S. labor market, but this migration should soon diminish if the jobs that these migrants seek shift to Mexico.

PERBEDAAN TEKNOLOGI PRODUKSI: IMPLIKASI PADA KONTEN FAKTOR PERDAGANGAN INDONESIA-AMERIKA SERIKAT

2014 ◽  
Vol 8 (2) ◽  
pp. 209-228
Author(s):  
Berlian Sitorus
Keyword(s):  
Labor Productivity ◽  
Production Technology ◽  
Bilateral Trade ◽  
Value Added ◽  
The United States ◽  
Input Output ◽  
Factor Content ◽  
Goods And Services ◽  
Capital Intensive ◽  
The U.S

Penelitian ini bertujuan untuk membandingkan teknologi produksi antara Amerika Serikat (AS) dan Indonesia, khususnya untuk mengestimasi intensitas faktor produksi pada perdagangan bilateral kedua negara berdasarkan persyaratan Leamer (1980). Model penelitian mengacu pada definisi konten faktor perdagangan dari Trefler & Zhu (2010) berdasarkan data World Input-Output Database (WIOD) yang diuji dengan asumsi teknologi sama dan pada saat teknologi berbeda. Dalam konten faktor perdagangan bilateral, upah pekerja AS 16 kali upah pekerja Indonesia, namun secara total, rata-rata akses modal tenaga kerja AS 23 kali rata-rata akses modal tenaga kerja Indonesia dan nilai tambah dari tenaga kerja di AS 35 kali lebih tinggi dibanding di Indonesia. Dengan memperhitungkan produktivitas faktor produksi berdasarkan nilai tambah tersebut, ternyata Indonesia padat modal dan AS padat karya; dan disimpulkan juga bahwa teknologi produksi yang digunakan di AS berbeda dengan di Indonesia. Selama 2000-2009, sebagian besar, yaitu sekitar 84,57% dari 35 sektor produksi yang diamati adalah padat modal. Untuk meningkatkan produktivitas tenaga kerja, penelitian ini merekomendasikan agar modal dan teknologi yang baru diprioritaskan ke sektor-sektor yang masih rendah produktivitasnya seperti sektor pertanian sehingga pada gilirannya akan menambah volume dan nilai tambah ekspor Indonesia. This study aims to compare the production technology between the United States and Indonesia, especially to estimate the factor intensity of production on bilateral trade based on the Leamer’s requirements (1980). The research model refers to the definition of trade factor content of trade of Trefler and Zhu (2010) based on data from the World Input-Output Database (WIOD). The model was tested based on two technology assumptions, similar technology and different technology. On the bilateral trade factor content, the labor prices of the U.S. was 16 times than Indonesian; however in overall, the average of capital access per labor of the U.S. was 23 times than Indonesian and the labor productivity in the U.S. was 35 times higher than in Indonesia. By accounting the production factors productivity based on value-added in exportimport of goods and services, Indonesia is capital intensive and the U.S. is labor intensive; and the production technology used in the U.S. is unlike that one used in Indonesia. In the period of 2000-2009, the production sectors, which are classified as capital intensive are around 84.57 percent. To increase labor productivity, the study recommends that the new capital stocks and technology should be prioritized to the sectors that are still low in productivity such as agriculture, which in turn will increase the volume and exports value-added of Indonesia.

scholarly journals Socks at War: American Hand Knitters and Military Footwear Production for the World Wars

2019 ◽  
Vol 37 (1) ◽  
pp. 67-92
Author(s):  
Rachel P. Maines
Keyword(s):  
World War Ii ◽  
World War I ◽  
The United States ◽  
Policy Option ◽  
Home Front ◽  
Industrial Complex ◽  
Industrial Workers ◽  
World War ◽  
The Military ◽  
The U.S

Abstract In both World Wars, combatant nations, including the United States, Britain, and Germany, learned that inadequate or poorly-maintained footwear produced costly and preventable casualties from trench foot and frostbite. While provision of shoes and boots to troops were major issues in earlier conflicts, no nation before World War I had fully appreciated the significance of warm, dry, well-fitting socks to the effectiveness of soldiers in the field. The large numbers of trench foot casualties in World War I, especially among the French and British, convinced policymakers that this vital commodity must receive a higher priority in military production planning, but few nations in wartime could shift production to knitting mills rapidly enough to make a difference. Thus, in Britain and the U.S, the best policy option proved to be recruiting women and children civilians to knit socks by hand for the military in the first war, and for refugees, prisoners and civilians in the second. This paper discusses the economic and military importance of this effort, including the numbers of pairs produced, and the program’s role in supplementing industrial production. The production of this low-technology but crucial item of military apparel is typical of detail-oriented tasks performed by women under conditions of full mobilization for war, in that they have a high impact on battlefield and home front performance and morale, but very low visibility as significant contributions to national defense. Often, both during and after the emergency, these efforts are ridiculed as trivial and/or wasteful. Unlike women pilots or industrial workers, handcrafters of essential supplies are regarded as performing extensions of their domestic roles as makers and caretakers of clothing and food. This was especially true in the U.S. in and after World War II, a wealthy industrialized nation that took pride in its modern - and thoroughly masculinist - military industrial complex.

scholarly journals The Impact of ICT on Labour Productivity – Europe vs. U.S.

2021 ◽  
Vol 129 ◽  
pp. 08021
Author(s):  
Predrag Trpeski ◽  
Borce Trenovski ◽  
Gunter Merdzan ◽  
Kristijan Kozeski
Keyword(s):  
Information And Communication Technologies ◽  
Productivity Growth ◽  
New Technologies ◽  
Labour Productivity ◽  
Value Added ◽  
Developed Countries ◽  
The United States ◽  
Critical Question ◽  
The Impact ◽  
The U.S

Research background: The European economy has been experiencing declining productivity growth rates since the 1970s despite high investments in information and communication technologies (ICT). Investments in ICT are considered a key driver of productivity growth that serves as a basis for further improvements in living standards. However, despite the emergence of new technologies and industries, especially after 1995, European productivity growth has slowed and lagged behind the United States. The critical question is why? Purpose of the article: This article aims to examine the effects of ICT on the European labour market in the period when machines and systems such as artificial intelligence, new information technologies, the Internet of things, and other technologies are becoming increasingly interconnected and intertwined. Additionally, the article examines the key reasons why European productivity lags behind the U.S. and explains them. Methods: The panel regression method analyzes the productivity lag of selected European developed countries and emerging markets in 2007-2019. The article additionally makes a qualitative analysis of the benefits of new technologies on productivity in Europe compared to the U.S. Findings & Value added: The results of the econometric analysis applied in this article confirm the positive but insignificant impact of ICT investments on the labour productivity of the case of European developed countries in the post-Great Recession period. Thus, the article fills the gap in the research literature regarding the relationship between ICT investments and the labour productivity of selected European countries.

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