Endnotes

¹ The popular press has reported that in 2002, Mexico lost more than 200,000 jobs in the maquiladora assembly industry along the U.S.-Mexico border, as more than 300 companies have moved to PRC (Miami Herald 2003).

² There is of course a production network between Mexico and the United States. But in this respect, Mexico is quite different from the rest of Latin America.

³ This review is not meant to be exhaustive.

⁴ Other related literature includes Bao, Chang, Sachs and Woo (2002), Fung, Iizaka and Siu (2003), Zhang and Song (2001), etc.

⁵ See also Ando and Kimura (2003) and Fukao and Okubo (2003).

⁶ For related robustness tests of these regression results, see Chantasasawat et al (2003).

⁷ As discussed earlier, wage rates are often found to be positively related to FDI in previous empirical studies of FDI.

⁸ Ando and Kimura (2003) found that at least for machinery (including general machinery, electric machinery, transport equipment and precision machinery), there is a deep production network in East Asia (with PRC). But Latin American economies are not forming production networks.

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