Productivity Growth in Mexico : Understanding Main Dynamics and Key Drivers
The report undertakes, for the first time, a comprehensive firm-level analysis of the entire Mexican economy over 25 years, relying on the last six rounds of the Economic Census, which were conducted between 1994 and 2019 and surveyed more than 20...
| Main Authors: | , , , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099605003142238279/P1708290e6be7a0c5080db01870124dc91e http://hdl.handle.net/10986/37190 |
| Summary: | The report undertakes, for the first
time, a comprehensive firm-level analysis of the entire
Mexican economy over 25 years, relying on the last six
rounds of the Economic Census, which were conducted between
1994 and 2019 and surveyed more than 20 million businesses.
It finds that Mexico’s disappointing aggregate productivity
masks large differences in productivity levels and growth
across locations, sectors, and firms. A geographic
productivity divide runs between the North-Center and South
of Mexico, but large differences also persist between
municipalities within regions. Fast-growing municipalities
that have caught up to the Mexican productivity frontier,
including in the South, while others have failed to grow at
all. There is also a divide between modern firms, with
access to finance and strong management, integrated into
global value chains (GVCs), and more traditional firms
characterized by limited access to finance and weak
capabilities, unable to benefit from Mexico’s regional and
global integration. The report shows that Mexico’s aggregate
productivity is weakened by structural factors at industry
and firm level — access to finance, lack of incentives to
invest in technology, managerial capacities, and the
business environment — that impede productive firms’ access
to resources. The rest of this summary gives a synopsis of
the report’s main findings and recommendations. |
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