Economic Complexity and Regional Manufacturing Performance in Mexico, 2004-2019

Manuel Gómez-Zaldívar () and Fernando Gómez-Zaldívar ()
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Manuel Gómez-Zaldívar: Universidad de Guanajuato
Fernando Gómez-Zaldívar: School of Government and Public Transformation, Tecnológico de Monterrey

No 4, Working Paper Series of the School of Government and Public Transformation from School of Government and Public Transformation, Tecnológico de Monterrey

Abstract: The development of Mexico's manufacturing sector has progressed unevenly across regions and industry groups, with the underlying causes varying over time. Using data from 2004 to 2019, we find that all Mexican regions experienced increased specialization and diversification. However, only those regions that shifted toward more complex manufacturing activities were able to expand their share of national manufacturing output. These findings underscore the critical role of industrial sophistication in shaping regional economic relevance. Consistent with prior research, our results highlight the importance of a clear and strategic industrial policy to support less dynamic regions. Such policy is essential for enabling structural transformation, fostering more balanced and inclusive economic growth, and overcoming persistent institutional and productive constraints that continue to hinder regional development.

Keywords: Industry Groups; Economic Complexity; Mexico's Municipalities (search for similar items in EconPapers)
JEL-codes: L60 R11 R12 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2025-07
New Economics Papers: this item is included in nep-geo
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