Export-oriented Industrialization,

the State and Social Capital

A Case Study of Maquiladora Production in Yucatán, Mexico

James J. Biles
Department of Geography
Western Michigan University
October 24, 2002
 Overview

• Background
• Social capital
• Social capital and maquiladora production
• Results of study
• Conclusions
 Background
• Neo-liberal economic reforms
– Export-oriented industrialization
– Change in the role of the state
– Replace informal institutions with formal
institutions
• Maquiladora production in Yucatán
• Research questions
 Social Capital
• Connections among individuals, social
networks and norms of reciprocity
• Bridging, linking and bonding social capital
• Potential benefits
• Social capital and geography
– Networks, accessibility, distance and
hierarchies
– Location of economic activity
Social Capital and Maquiladora Production
• Networks of social capital in maquiladoras
• Focus on one “link” in chain
– Maquiladora operators
• Uses of social capital
– State government
– Financial resources
– Suppliers
– Infrastructure
– Labor
 Results of Study
• Necessary conditions
– Location, labor costs, and government support
• Economic factors
– Labor, infrastructure, government support
• Role of social capital
– Access to economic factors
• Differences in role of social capital
 Conclusions
• Well-defined network of social capital
exists among maquiladora operators
• Network based on all three forms of social
capital
• Government plays an important role
– Necessary conditions
– Social capital
• Postscript (maquiladora closings)