EconPapers    
Economics at your fingertips  
 

Determinants of Regional Growth by Manufacturing Sector in Mexico, 1988-2008

Isidro Soloaga and Mariana Pereira-López

Working Papers from Universidad Iberoamericana, Department of Economics

Abstract: This article presents an empirical analysis aimed at identifying the determinants of regional growth in Mexico by manufacturing sector in the period 1988-2008. In the framework of agglomeration economies it argues that the main factor behind Mexico’s long-term regional industrial growth is Jacobs externalities (urbanization economies), and that wages are the main short-term factor behind this growth. There is heterogeneity in the determinants of regional growth according to technological intensity. Low-technology sectors appear to be more sensitive to initial wages and exhibit Jacobs externalities, while higher technology sectors show Porter economies (competition/specialization). Controlling for market conditions, agglomeration economies, and initial conditions, the south, the center and the Gulf of Mexico have a relative disadvantage for growth in medium-high-technology sectors. Moreover, only one out of the 58 Metropolitan Areas (MAs) studied shows a relative advantage for growth in this kind of industry. Relative advantage for low-technology sectors appears to be related to transportation and service infrastructure, while for high-technology sectors the main determinant is human capital.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.iberoeconomia.mx/images/stories/Publica ... eiraSoloaga_2013.pdf (application/pdf)

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:uic:wpaper:0713

Access Statistics for this paper

More papers in Working Papers from Universidad Iberoamericana, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Pablo Cotler ( this e-mail address is bad, please contact ).

 
Page updated 2021-05-15
Handle: RePEc:uic:wpaper:0713