Manufacturing sector performance in Mexico, under balance of payments-constrained growth

Between 1998 and 2006, the balance of payments-constrained capital productivity for maquiladoras increased signifi cantly, while the same estimated for non-maquiladoras grew only slightly. The two sectors have not built forward and backward linkages, even though they have been constrained similarly by the foreign exchange gap. Trade liberalization policy, particularly the promotion of temporary imports for re-export, has not helped to bring about export-led growth in Mexico.