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...

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Main Authors:	Deichmann, Uwe, Fay, Marianne, Koo, Jun, Lall, Somik V.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AVERAGE PRODUCTIVITY BUSINESS ENVIRONMENT CITIES COMPANY CREDIT MARKETS DEVELOPED COUNTRIES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPLOYMENT ENTREPRENEURS EXPORTS EXTERNALITIES FIRM SIZE FIRMS FOREIGN MARKETS GDP GDP PER CAPITA GROWTH MODELS GROWTH THEORIES GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION INCOME INCREASING RETURNS INEFFICIENCY LABOR FORCE LABOR PRODUCTIVITY LENDERS MANUFACTURING ESTABLISHMENTS MIGRATION OPERATING COSTS POLICY MAKERS POSITIVE EFFECTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC POLICY PURCHASING POWER REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY REFORM SMALL FIRMS SUBSIDIARIES SUPPLIERS SUSTAINABLE GROWTH TECHNOLOGY ADOPTION TRADE FLOWS TRANSPORT URBANIZATION WEALTH ECONOMIC STRUCTURE INFRASTRUCTURE MANUFACTURING ENTERPRISES TECHNOLOGY ACCUMULATION INFRASTRUCTURE DEVELOPMENT MICRO-ENTERPRISES SKILL SHORTAGES TRAINING NEEDS MARKET ACCESS TRANSPORT INFRASTRUCTURE WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2002/10/2031708/economic-structure-productivity-infrastructure-quality-southern-mexico http://hdl.handle.net/10986/19223

id	okr-10986-19223
recordtype	oai_dc
spelling	okr-10986-192232021-04-23T14:03:42Z Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico Deichmann, Uwe Fay, Marianne Koo, Jun Lall, Somik V. AVERAGE PRODUCTIVITY BUSINESS ENVIRONMENT CITIES COMPANY CREDIT MARKETS DEVELOPED COUNTRIES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPLOYMENT ENTREPRENEURS EXPORTS EXTERNALITIES FIRM SIZE FIRMS FOREIGN MARKETS GDP GDP PER CAPITA GROWTH MODELS GROWTH THEORIES GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION INCOME INCREASING RETURNS INEFFICIENCY LABOR FORCE LABOR PRODUCTIVITY LENDERS MANUFACTURING ESTABLISHMENTS MIGRATION OPERATING COSTS POLICY MAKERS POSITIVE EFFECTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC POLICY PURCHASING POWER REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY REFORM SMALL FIRMS SUBSIDIARIES SUPPLIERS SUSTAINABLE GROWTH TECHNOLOGY ADOPTION TRADE FLOWS TRANSPORT URBANIZATION WEALTH ECONOMIC STRUCTURE PRODUCTIVITY INFRASTRUCTURE MANUFACTURING ENTERPRISES HUMAN CAPITAL TECHNOLOGY ACCUMULATION REGULATORY FRAMEWORK INFRASTRUCTURE DEVELOPMENT MICRO-ENTERPRISES SKILL SHORTAGES TRAINING NEEDS MARKET ACCESS TRANSPORT INFRASTRUCTURE ECONOMIC STRUCTURE WEALTH 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. 2014-08-01T19:47:52Z 2014-08-01T19:47:52Z 2002-10 http://documents.worldbank.org/curated/en/2002/10/2031708/economic-structure-productivity-infrastructure-quality-southern-mexico http://hdl.handle.net/10986/19223 English en_US Policy Research Working Paper;No. 2900 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AVERAGE PRODUCTIVITY BUSINESS ENVIRONMENT CITIES COMPANY CREDIT MARKETS DEVELOPED COUNTRIES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPLOYMENT ENTREPRENEURS EXPORTS EXTERNALITIES FIRM SIZE FIRMS FOREIGN MARKETS GDP GDP PER CAPITA GROWTH MODELS GROWTH THEORIES GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION INCOME INCREASING RETURNS INEFFICIENCY LABOR FORCE LABOR PRODUCTIVITY LENDERS MANUFACTURING ESTABLISHMENTS MIGRATION OPERATING COSTS POLICY MAKERS POSITIVE EFFECTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC POLICY PURCHASING POWER REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY REFORM SMALL FIRMS SUBSIDIARIES SUPPLIERS SUSTAINABLE GROWTH TECHNOLOGY ADOPTION TRADE FLOWS TRANSPORT URBANIZATION WEALTH ECONOMIC STRUCTURE PRODUCTIVITY INFRASTRUCTURE MANUFACTURING ENTERPRISES HUMAN CAPITAL TECHNOLOGY ACCUMULATION REGULATORY FRAMEWORK INFRASTRUCTURE DEVELOPMENT MICRO-ENTERPRISES SKILL SHORTAGES TRAINING NEEDS MARKET ACCESS TRANSPORT INFRASTRUCTURE ECONOMIC STRUCTURE WEALTH
spellingShingle	AVERAGE PRODUCTIVITY BUSINESS ENVIRONMENT CITIES COMPANY CREDIT MARKETS DEVELOPED COUNTRIES ECONOMETRIC ANALYSIS ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STRUCTURE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPLOYMENT ENTREPRENEURS EXPORTS EXTERNALITIES FIRM SIZE FIRMS FOREIGN MARKETS GDP GDP PER CAPITA GROWTH MODELS GROWTH THEORIES GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION INCOME INCREASING RETURNS INEFFICIENCY LABOR FORCE LABOR PRODUCTIVITY LENDERS MANUFACTURING ESTABLISHMENTS MIGRATION OPERATING COSTS POLICY MAKERS POSITIVE EFFECTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC POLICY PURCHASING POWER REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY REFORM SMALL FIRMS SUBSIDIARIES SUPPLIERS SUSTAINABLE GROWTH TECHNOLOGY ADOPTION TRADE FLOWS TRANSPORT URBANIZATION WEALTH ECONOMIC STRUCTURE PRODUCTIVITY INFRASTRUCTURE MANUFACTURING ENTERPRISES HUMAN CAPITAL TECHNOLOGY ACCUMULATION REGULATORY FRAMEWORK INFRASTRUCTURE DEVELOPMENT MICRO-ENTERPRISES SKILL SHORTAGES TRAINING NEEDS MARKET ACCESS TRANSPORT INFRASTRUCTURE ECONOMIC STRUCTURE WEALTH Deichmann, Uwe Fay, Marianne Koo, Jun Lall, Somik V. Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
geographic_facet	Latin America & Caribbean Mexico
relation	Policy Research Working Paper;No. 2900
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Deichmann, Uwe Fay, Marianne Koo, Jun Lall, Somik V.
author_facet	Deichmann, Uwe Fay, Marianne Koo, Jun Lall, Somik V.
author_sort	Deichmann, Uwe
title	Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
title_short	Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
title_full	Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
title_fullStr	Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
title_full_unstemmed	Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico
title_sort	economic structure, productivity, and infrastructure quality in southern mexico
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2002/10/2031708/economic-structure-productivity-infrastructure-quality-southern-mexico http://hdl.handle.net/10986/19223
_version_	1764439386269679616

Economic Structure, Productivity, and Infrastructure Quality in Southern Mexico

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