Abstract
Industrial specialization in Baja California in the metal products, machinery and equipment sector is associated in net economies with large companies from Asia and southern California.These firms operate together in the region under the institutional framework provided by NAFTA and develop outsourcing and intra-industrial operations. In this context, this text attempts to determine the impact from the dynamics of these enterprises on the economic and social life of Baja California, in order to assess the welfare implications derived from the industrial strategy of attracting direct investment. It is suggested that presence in the region of such firms has not been associated with wage improvements by productivity gains derived by specialization, and that the success of such a strategy in attracting investments is the result of the economies associated with wage discrimination and location.
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