Foreign Direct Investment and Local Linkages: Experiences and the Role of Policies. The Case of the Mexican Television Industries in Tijuana
Author(s)
Carrillo, Jorge
Abstract
The manufacturing TNC subsidiaries established in Mexico are playing a priority role within the labor markets in the Mexican economy, not only because of their participation in exports, generation of foreign exchange and employment in Mexico, but also because they are in command of a process of deep economic change. In only twenty years, Mexico went from exporting natural resources to exporting manufactured goods. TNCs’ macro indicator success has been accompanied by a microeconomic and social process of industrial upgrading based on technological change and a better use of human resources. Although the impact TNC subsidiaries have on the local configuration of productive networks, business capacities and links with different sectors has not been studied well enough in Mexico, it is nevertheless widely criticized. In other words, TNC subsidiaries undoubtedly have a positive impact on different areas, such as employment, generating foreign exchange, technological and organizational capacities and labor skills, but it is based on a learning that takes place within the affiliated plants themselves and in intra-firm relations. In spite of government and private efforts, their local spill over effects on Mexican companies are still very weak. The purpose of this study is to identify the impact foreign TNC subsidiaries located in Mexico have on the development of local suppliers. The methodology is based on the application of three different types of questionnaires: one addressed to television TNC assembly plant workers in Tijuana, another to local suppliers, both foreign and national, and a third questionnaire geared to decision-makers and local business associations. We also considered results from other studies and analyzed different sources of information. The questionnaires were applied in Tijuana throughout January 2001.