Export-oriented Development, the State and Social Capital: A Case Study of Maquiladora Production in Yucatán, Mexico
PAPERS OF THE APPLIED GEOGRAPHY CONFERENCES (vol. 25, pp. 157-165)

James J. Biles
Department of Geography
Western Michigan University
Kalamazoo, MI 49008

Lindon Robison
Department of Agricultural Economics
Michigan State University
East Lansing, MI 48824

Marcelo Siles
Integrative Studies in Social Science
Michigan State University
East Lansing, MI 48824

ABSTRACT

During the past two decades, many developing countries have abandoned import-substitution industrialization policies (ISI) in favor of export-oriented industrialization (EOI). Maquiladora production is a particularly Mexican manifestation of the EOI strategy in which locations take advantage of proximity to the United States, low-cost labor, and a variety of tax incentives in order attract foreign investment and employment. The imposition of these neo-liberal reforms among developing economies in Latin America may be construed as an attempt to replace informal institutions, based largely on social capital, with formal institutions, designed to promote purely market forces. This study examines the roles of government intervention and social capital in facilitating implementation of the EOI strategy in the case of Yucatán, Mexico. In general, a well-defined network of social capital exists among the owners and operators of maquiladoras in Yucatán. Although social capital facilitates access to qualified labor and necessary infrastructure and plays an important role in understanding local customs and expectations, some significant differences exist among maquiladoras. In addition, both social capital and government intervention are important factors in the proliferation of these export-oriented firms.