Competitiveness and Growth of the Mexican Economy

Daniel Chiquiar and Manuel Ramos Francia

No 2009-11, Working Papers from Banco de México

Abstract: We address the role that deep, structural factors may have as determinants of Mexico's economic growth. We argue that Mexico's poor growth performance appears to be associated not only with shorter-run events such as the "lost decade" of the eighties, but also with supply-side features of the economy that have been present for at least four decades. Mexico's low competitiveness and poor growth potential seem to reflect an institutional framework that tends to support rigid, non-competitive market structures, and incentives that promote the allocation of resources towards unproductive rent-seeking activities relatively more than into investment, production, and adoption of superior technologies. We present examples of input markets where we believe these issues are central. We conclude that solving this situation requires microeconomic policies that lead to fundamental changes in the incentive structure of the economy.

JEL-codes: O12 O31 O43 (search for similar items in EconPapers)
Date: 2009-11
New Economics Papers: this item is included in nep-cse, nep-dev and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:bdm:wpaper:2009-11

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