Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
There are large and sustained differences in the economic performance of sub-national regions in most countries. The authors examine the economic structure and productivity in Southern Mexico and compare it with the rest of the country. The authors...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/10/2031708/economic-structure-productivity-infrastructure-quality-southern-mexico http://hdl.handle.net/10986/19223 |
| Summary: | There are large and sustained
differences in the economic performance of sub-national
regions in most countries. The authors examine the economic
structure and productivity in Southern Mexico and compare it
with the rest of the country. The authors use firm level
data from Mexican manufacturing to test the relative
importance of firm level characteristics (such as human
capital and technology adoption) compared with external
characteristics (such as infrastructure quality and
regulatory environment) in explaining productivity
differentials. The authors find that the economic structure
of Southern Mexico is considerably different from the rest
of the country, with the economic landscape dominated by
micro enterprises and a relative specialization in low
productivity activities. This, coupled with low skill levels
and fewer skill upgrading opportunities, reduces the
performance of Southern firms. Productivity differentials
between Southern firms and others, however, only exist for
micro enterprises. The econometric analysis shows that while
employee training and technology adoption enhance
productivity, access to markets by improving transport
infrastructure that link urban areas also have important
productivity effects. |
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