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Multifactor Productivity and its Determinants: Al Empirical Analysis for Mexican Manufacturing

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  • Héctor Salgado Banda
  • Lorenzo E. Bernal Verdugo

Abstract

We use data from the Annual Industrial Survey for 1996-2003. First, we estimate production functions by means of growth accounting exercises and panel data econometrics for the whole sector and for 14 comprehensive groups. Various measures of Multifactor Productivity (MFP) are constructed, as we consider diverse combinations of inputs with capital, labour, electricity and transport. This allows us to compare MFP growth rates between groups. Second, we analyse econometrically some of the determinants of MFP and Labour Productivity (LP) growth. We find that, on the one hand, there is some evidence of a positive relationship between market concentration and technology adoption; on the other hand, both technology adoption and human capital seem to be promoting productivity, whilst market concentration is exerting a negative influence on it. In sum, our results suggest that, once controlling for the effect on technology adoption, more concentration (conversely, less competition) has a negative impact on productivity.

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File URL: http://www.banxico.org.mx/publicaciones-y-discursos/publicaciones/documentos-de-investigacion/banxico/%7B48CE065E-B1DD-6EBF-9BB2-C7B4A2123DF0%7D.pdf
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Bibliographic Info

Paper provided by Banco de México in its series Working Papers with number 2007-09.

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Date of creation: May 2007
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Handle: RePEc:bdm:wpaper:2007-09

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Web page: http://www.banxico.org.mx
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Keywords: Panel data; Productivity; Manufacturing; Competition;

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References

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  1. Richard Blundell & Steve Bond, 1999. "GMM estimation with persistent panel data: an application to production functions," IFS Working Papers W99/04, Institute for Fiscal Studies.
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Citations

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Cited by:
  1. Frauke G. Braun & Astrid Cullmann, 2008. "Key Parameters and Efficiency of Mexican Manufacturing: Are There Still Differences between the North and the South? An Application of Nested and Stochastic Frontier Panel Data Models," Discussion Papers of DIW Berlin 816, DIW Berlin, German Institute for Economic Research.
  2. Sánchez-Valadez, Manuel, 2012. "Decisiones financieras, competencia en el mercado y desempeño de las empresas: Evidencia empírica para Iberoamérica/Financial Decisions, Market Competition and Firm Performance: Empirical Evidence ," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 359 (36 pag, Abril.
  3. Dutrénit, gabriela & Capdevielle, Mario & Corona, Juan Manuel & Puchet, Martin & Santiago, Fernando & Vera-Cruz, Alexandre, 2010. "El sistema nacional de innovación mexicano: estructuras, políticas, desempeño y desafíos
    [The Mexican national innovation system: structures, policies, performance and challenges]
    ," MPRA Paper 31982, University Library of Munich, Germany.
  4. Daniel Chiquiar & Manuel Ramos Francia, 2009. "Competitiveness and Growth of the Mexican Economy," Working Papers 2009-11, Banco de México.
  5. Nicolás Amoroso & Daniel Chiquiar & Núria Quella & Manuel Ramos Francia, 2008. "Determinants of the Comparative Advantage and of the Performance of Mexico’s Manufacturing Exports During 1996-2005," Working Papers 2008-01, Banco de México.

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