Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico

There are large and sustained differences in the economic performance of sub-national regions in most countries. The authors examine the economic structure and productivity in Southern Mexico and compare it with the rest of the country. The authors use firm level data from Mexican manufacturing to test the relative importance of firm level characteristics (such as human capital and technology adoption) compared with external characteristics (such as infrastructure quality and regulatory environment) in explaining productivity differentials. The authors find that the economic structure of Southern Mexico is considerably different from the rest of the country, with the economic landscape dominated by micro enterprises and a relative specialization in low productivity activities. This, coupled with low skill levels and fewer skill upgrading opportunities, reduces the performance of Southern firms. Productivity differentials between Southern firms and others, however, only exist for micro enterprises. The econometric analysis shows that while employee training and technology adoption enhance productivity, access to markets by improving transport infrastructure that link urban areas also have important productivity effects.

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Bibliographic Details
Main Authors: Deichmann, Uwe, Fay, Marianne, Koo, Jun, Lall, Somik V.
Language:English
en_US
Published: World Bank, Washington, DC 2002-10
Subjects:AVERAGE PRODUCTIVITY, BUSINESS ENVIRONMENT, CITIES, COMPANY, CREDIT MARKETS, DEVELOPED COUNTRIES, ECONOMETRIC ANALYSIS, ECONOMIC ACTIVITY, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC RESEARCH, ECONOMIC STRUCTURE, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL RESEARCH, EMPLOYMENT, ENTREPRENEURS, EXPORTS, EXTERNALITIES, FIRM SIZE, FIRMS, FOREIGN MARKETS, GDP, GDP PER CAPITA, GROWTH MODELS, GROWTH THEORIES, GROWTH THEORY, HUMAN CAPITAL, IMPERFECT COMPETITION, INCOME, INCREASING RETURNS, INEFFICIENCY, LABOR FORCE, LABOR PRODUCTIVITY, LENDERS, MANUFACTURING ESTABLISHMENTS, MIGRATION, OPERATING COSTS, POLICY MAKERS, POSITIVE EFFECTS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC POLICY, PURCHASING POWER, REGRESSION ANALYSIS, REGULATORY FRAMEWORK, REGULATORY REFORM, SMALL FIRMS, SUBSIDIARIES, SUPPLIERS, SUSTAINABLE GROWTH, TECHNOLOGY ADOPTION, TRADE FLOWS, TRANSPORT, URBANIZATION, WEALTH ECONOMIC STRUCTURE, INFRASTRUCTURE, MANUFACTURING ENTERPRISES, TECHNOLOGY ACCUMULATION, INFRASTRUCTURE DEVELOPMENT, MICRO-ENTERPRISES, SKILL SHORTAGES, TRAINING NEEDS, MARKET ACCESS, TRANSPORT INFRASTRUCTURE, WEALTH,
Online Access:http://documents.worldbank.org/curated/en/2002/10/2031708/economic-structure-productivity-infrastructure-quality-southern-mexico
https://hdl.handle.net/10986/19223
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