Total factor productivity in Mexican manufacturing. An analysis by great division and enterprise’s structure: 1988-2018

Authors

DOI:

https://doi.org/10.29105/rpgyc11.21-292

Keywords:

total factor productivity, Manufacturing, Subsectors, Enterprise’s structure

Abstract

TThe main of this paper is to describe the performance of Mexico's manufacturing divisions through total factor productivity (TFP) in the period 1988-2018. The Solow model methodology is used through a Cobb-Douglas type function with constant returns to scale with the intention of disaggregating the growth rate of the product and thereby determining the growth of TFP. Additionally, the panel data model is included to establish the contribution by business structure. The TFP growth of Mexican manufacturing in the study period has been 2.3% annually. Meanwhile, a heterogeneous growth process can be seen in the subsectors, highlighting the metal products and food and beverage industries. It is observed that micro and small companies are disjointed from the growth model and large companies have contributed significantly to the growth of TFP. Therefore, it is essential to apply economic policy measures that integrate micro and small businesses and that promote better scenarios for greater growth in manufacturing divisions that have lagged behind.

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Author Biographies

Jimmy Félix Armenta, Autonomous University of Sinaloa

Doctor en Economía y Negocios Internacionales por la Universidad Autónoma Indígena de México. Profesor investigador de tiempo completo en la Universidad Autónoma de Sinaloa. Email: jimmyfel@hotmail.com. ORCID: 0000-0002-3520-7795.

Rosa Delia Aguilar Carvajal, Autonomous University of Sinaloa

Doctora en Administración por Centro Universitario de Ciencias y Administración. Profesor investigador de tiempo completo en la Universidad Autónoma de Sinaloa. Email: R.aguilar.lrci@uas.edu.mx. ORCID: 0000-0003-4746-6716.

Ramón Valenzuela Edeza, Tecnológico Nacional de México

Maestro en Ciencias. Profesor investigador de tiempo completo en Tecnológico Nacional de México. Email:  ramon.ve@mochis.tecnm.mx. ORCID: 0009-0005-7832-5432.

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Published

2024-12-06

How to Cite

Félix Armenta, J., Aguilar Carvajal, R. D., & Valenzuela Edeza, R. (2024). Total factor productivity in Mexican manufacturing. An analysis by great division and enterprise’s structure: 1988-2018. Política, Globalidad Y Ciudadanía, 11(21), 15–33. https://doi.org/10.29105/rpgyc11.21-292