Explaining Imports and Exports: A Focus on Non-Maquiladora Mexican Firms

This paper examines both the imports and exports of nonmaquiladora Mexican firms, theorizing that importing is generally motivated by exploration for new resources and exporting by exploitation of existing resources. Our results indicate that firm size is positively related to both imports and exports, while low cost labor advantage is positively associated with exports but not significantly related to imports. Because importing may precede exporting, it should be considered as part of the internationalization process of firms and as a key way to acquire resources before exploiting them through exporting.