Disassembled structures: the political economy of Mexico’s leading auto export sector

James M. Cypher () and Mateo Crossa ()

Brazilian Journal of Political Economy, 2023, vol. 43, issue 1, 212-235

Abstract: Mexico’s current export-led economy arose from the adoption of a market-drivenmodel based in conditions of technological disarticulation separating dominant transnationalfirms from the national industrial base. This determined that, in contrast to Verdoorn’sanalysis, the crucial manufacturing sector would function not as a motor-force inducing aprocess of autonomous national development by accelerating productivity growth andpromoting product and process innovations, but rather would deepen a fragmented process ofproduction, centered on processing imported components under conditions of declining totalfactor productivity. Despite the profound reordering of its economic geography over the past30 years, this process has failed to produce legitimate markers of “upgrading”. JEL Classification: E23; F23; F63; L62; N16.

Keywords: Disarticulation; upgrading; auto industry; labor arbitrage; technology transfers (search for similar items in EconPapers)
Date: 2023
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