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Disassembled structures: the political economy of Mexico’s leading auto export sector

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  • James M. Cypher
  • Mateo Crossa

Abstract

Mexico’s current export-led economy arose from the adoption of a market-drivenmodel based in conditions of technological disarticulation separating dominant transnationalfirms from the national industrial base. This determined that, in contrast to Verdoorn’sanalysis, the crucial manufacturing sector would function not as a motor-force inducing aprocess of autonomous national development by accelerating productivity growth andpromoting product and process innovations, but rather would deepen a fragmented process ofproduction, centered on processing imported components under conditions of declining totalfactor productivity. Despite the profound reordering of its economic geography over the past30 years, this process has failed to produce legitimate markers of “upgrading”. JEL Classification: E23; F23; F63; L62; N16.

Suggested Citation

  • James M. Cypher & Mateo Crossa, 2023. "Disassembled structures: the political economy of Mexico’s leading auto export sector," Brazilian Journal of Political Economy, Center of Political Economy, vol. 43(1), pages 212-235.
    • Handle: RePEc:ekm:repojs:v:43:y:2023:i:1:p:212-235:id:2393
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2393/2330
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    More about this item

    Keywords

    Disarticulation; upgrading; auto industry; labor arbitrage; technology transfers;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

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