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Industrial development under institutional frailty: the development of the Mexican textile industry in the nineteenth century

Aurora Gómez-Galvarriato

Revista de Historia Económica / Journal of Iberian and Latin American Economic History, 1999, vol. 17, issue S1, 191-223

Abstract: Modern textile manufacture appeared early in Mexico and grew continuously through the 19th century. Yet, it did not translate into a successful industrialization process as a result of naturally endowed high transportation costs and institutional frailty: a concept that encompasses institutional uncertainty, weakness and fragmentation. Institutional frailty generated a captured tariff policy that gave low effective protection to the industry, a backward financial market that limited resources available for industrial growth, and increased transportation costs through inter-state tariff barriers. High transportation costs fragmented the national market and as a result, the textile industry grew geographically dispersed.

Date: 1999
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