Technology and Firm Performance in Mexico

Technology and Firm Performance in Mexico

The author investigates the relationship between a firm's adoption of new manufacturing technology and its performance. A panel database that identifies technological adoption and tracks firms over time allows the use of different measures of firm performance-wages, productivity, net employment growth, job creation, and job destruction. Results show that technology is associated with high firm performance in all these metrics. The effect of new technology on performance is larger for firms located in the north and in Mexico City. This marginal value significantly increased after the 1994 crisis and the North American Free Trade Agreement. Furthermore, technology increased the wage of semi-skilled workers compared with unskilled workers by about 11 percent over seven years.

Saved in:
Bibliographic Details
Main Author: López-Acevedo, Gladys
Language:English
en_US
Published: World Bank, Washington, DC 2002-02
Subjects:TECHNOLOGICAL CHANGE, TECHNOLOGY DIFFUSION, MANUFACTURING ENTERPRISES, MANUFACTURING PROCESSES, WAGES, PRODUCTIVITY, JOB CREATION, TECHNOLOGICAL INNOVATIONS, WAGE INCREASES, FIRM SIZE, WAGE LEVELS ADVANCED TECHNOLOGY, BUSINESS ECONOMICS, COMMUNICATION TECHNOLOGY, COMPETITION POLICY, CONSUMERS, ECONOMIC ACTIVITY, EFFICIENCY WAGES, ELASTICITIES, EMPLOYMENT, EXPORTS, FREE TRADE, GOVERNMENT REGULATION, GROSS DOMESTIC PRODUCT, GROUP, HUMAN CAPITAL, INFLATION, INNOVATION, INNOVATIONS, LABOR FORCE, LABOR MARKETS, MARGINAL VALUE, MICROECONOMICS, NETWORKS, NEW TECHNOLOGIES, NEW TECHNOLOGY, POLICY MAKERS, POLITICAL ECONOMY, PRODUCTIVITY GROWTH, PUBLIC ENTERPRISES, QUALITY OF LIFE, SMALL BUSINESS, TECHNOLOGY, TECHNOLOGY ACQUISITION, TECHNOLOGY ADOPTION, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADE LIBERALIZATION, UNEMPLOYMENT, WAGE DIFFERENTIALS, WORKERS, WORKERS EXPERIENCE,
Online Access:http://documents.worldbank.org/curated/en/2002/02/1703255/technology-firm-performance-mexico
https://hdl.handle.net/10986/15759
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The author investigates the relationship between a firm's adoption of new manufacturing technology and its performance. A panel database that identifies technological adoption and tracks firms over time allows the use of different measures of firm performance-wages, productivity, net employment growth, job creation, and job destruction. Results show that technology is associated with high firm performance in all these metrics. The effect of new technology on performance is larger for firms located in the north and in Mexico City. This marginal value significantly increased after the 1994 crisis and the North American Free Trade Agreement. Furthermore, technology increased the wage of semi-skilled workers compared with unskilled workers by about 11 percent over seven years.

Similar Items