Spatial spillovers in Mexico's labour productivity

Octavio Escobar

Revue d'économie régionale et urbaine, 2016, vol. Décembre, issue 5, 1075-1108

Abstract: This paper examines the determinants of improvements in manufacturing labour productivity for regions in Mexico. Extending the models of Ciccone and Hall (1996) and Ciccone (2002) to account for spatial spillovers, we find that not only complementarity through technology spillovers but also competition in attracting production factors exist among the regions. We estimate our model using data at the micro-regional level for the 1988?2008 period. The results indicate both that spatial spillovers increase labour productivity and that spatial dynamics contribute to the development of clusters in high- and low-productivity regions. These dynamics contribute to Mexico's polarisation.

Keywords: labour productivity; Mexico; regional disparities; spatial econometrics (search for similar items in EconPapers)
Date: 2016
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