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CENTRAL AMERICA MAQUILADORAS AND THEIR IMPACT ON ECONOMIC GROWTH AND EMPLOYMENT

Keywords: Central America , economic growth , employment , in bound industries.

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Abstract:

The objective of this paper is to analyze the different perspectives of the roles played by the maquiladora in Central America as a lever of economic growth and social development in the region. Maquiladoras are industries that import materials and equipment, perform assembly or manufacturing processes, then re-export the finished goods to other countries. After a brief historical review of the maquiladoras emergence in the Central America region, the context is analyzed to underline the legal regime of temporal import and legal regime of managerial oriented free zone or fiscal precinct. Afterwards, the impacts that the maquiladoras have had in the regional economic growth and employment generation under the variable of the Asian competence is analyzed. After the discussion, prospective scenarios are analyzed and several strategies are recommended, including the promoting and creation of maquiladoras that go beyond the competitive advantage of cheap human labor. The Central America countries must design and implement strategies of diversification of the maquiladora development process in industrial sectors that require greater added value and technological innovation.

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