Maquiladora Mortality: Manufacturing Plant Closure in Mexico

Manufacturing plant closure has been the subject of much national concern, and an extensive literature principally focused on the developed world. This study extends the findings on plant closure with an analysis of export-oriented manufacturers (maquiladoras) in Mexico, 1996–2006. The foci of this research are hypothesised variables of maquiladora closure: product manufactured (value-added), size of plant, plant location, and size of urban place. The results of a logistical regression model indicate that plant size and value-added are highly probable determinants of plant closure; large, high value-added product maquiladoras have low rates of plant closure. Maquiladoras manufacturing low value-added products have high rates of closure; however, these manufacturers also have significant numbers of surviving plants. This suggests that multiple manufacturing platforms are viable among Mexico’s export-oriented industry. The findings also suggest that much plant closure is a result of exogenous factors,exiting plants in a global search for cheap labour. Mexico, however, has a geographic comparative advantage that, for many maquiladoras, trumps wages in more distant locations.     

Appeal rate and caseload: evidence from civil litigation in Korea

Courts of modern democratic societies have generally implemented appeal procedures to correct potential errors in ruling. However, considering the time and effort that both litigants spend, availability of an appeal cannot be better than reaching the correct judgment in the original case. This difficulty raises the policy issue of how to reduce the rate of appeals and improve welfare of litigants. In this paper, we assert that lower caseloads allow judges to expend more time and effort on each case, contributing to lower appeal rates. Analysis of court-level data from Korea corroborates our inference.