Mexican Exceptionalism: Globalization and De-Industrialization, 1750–1877

Rafael Dobado González, Aurora Gómez Galvarriato and Jeffrey G. Williamson

The Journal of Economic History, 2008, vol. 68, issue 3, 758-811

Abstract: Like the rest of the poor periphery, Mexico fought with de-industrialization in the century before the 1870s. Yet, Mexican manufacturing defended itself better than did the rest of the poor periphery. Why Mexican exceptionalism? This article decomposes the sources of de-industrialization into productivity events abroad, globalization forces connecting Mexico to those markets, and domestic forces. It uses a neo-Ricardian model to implement the decomposition, advocates a price dual approach, and develops a new price and wage data base. Mexican exceptionalism was due to weaker Dutch disease effects, better wage competitiveness, and the policy autonomy to foster industry.

Date: 2008
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