TECHNICAL EFFICIENCY, TECHNOLOGICAL DEVELOPMENT, AND THE LABOR PRODUCTIVITY GAP IN MEXICAN MANUFACTURING

Juan Chavez-Martin del Campo () and Felipe Fonseca ()

Regional and Sectoral Economic Studies, 2013, vol. 13, issue 2, 43-58

Abstract: This paper applies a stochastic frontier approach to analyze the evolution of technical efficiency in Mexican manufacturing and its effect on the labor productivity gap among states over the period 1988-2008. The model allows for heterogeneity in technological development by introducing region-specific effects in the econometric specification. The main findings of our analysis are threefold. First, technical efficiency was both increasing and converging over time and across states in a context where labor productivity was also converging. Second, there are considerable differences in the levels of technological development of the north and the central regions with respect to the south that partially explains the labor productivity gap. Third, the dynamics of technical efficiency contributed to reduce inequality in productivity among states over the analyzed period.

Keywords: Manufacturing; Mexican regions; Labor productivity; Stochastic frontier; Structural efficiency; Technical efficiency. (search for similar items in EconPapers)
JEL-codes: D24 L60 O18 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.usc.es/economet/reviews/eers1324.pdf
No.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eaa:eerese:v:13:y2013:i:2_4

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm

Access Statistics for this article

More articles in Regional and Sectoral Economic Studies from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().