Total factor productivity in Mexican manufacturing. An analysis by great division and enterprise’s structure: 1988-2018
DOI:
https://doi.org/10.29105/rpgyc11.21-292Keywords:
total factor productivity, Manufacturing, Subsectors, Enterprise’s structureAbstract
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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Copyright (c) 2024 Jimmy Félix Armenta, Rosa Delia Aguilar Carvajal, Ramón Valenzuela Edeza
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