Productive specialization and the divergence in productivity: The case of Mexico, 1982-2006
Abstract
This paper studies the productivity performances of Mexico in international perspective
during the period 1982-2006. Mexico adopted a policy of economic liberalisation coupled
by some market oriented structural reforms, after a long period of import substitution.
However, growth in GDP per capita has been low. Comparing the Mexican economic
performance with those of other more developed and developing economies one can
observe the divergence of both GDP per capita and labour productivity, in relation to the
OECD member countries and other Latin American economies.
Productive and commercial specialisation has geared towards activities associated with
global value chains that demand and incorporate very little local technological value and
have not necessarily translated into forward and backward linkages with the rest of the
economy. There is a significant change in the composition of both output and labour among
sectors, and within them; the more dynamic sectors are those featuring a relatively lower
productivity. Sectors oriented to the less dynamic domestic markets, feature a high and
growing technological heterogeneity. Leading firms in these sectors record significant
productivity growth, thereby increasing productivity gaps among industries and sectors of
economic activity. Clearly, best productive and technology practices fail to diffuse across
industries and the informal sector of the economy is increased.