The paper investigates the effect of agglomeration economies on the manufacturing sector of the larger cities of Mexico. It is assumed that economic globalization is determining a trend toward the re-localization of manufacturing activities towards the northern border region. As a result, an increase in manufacturing and urban agglomeration is occuring in that region. The present research is based on the hypothesis that agglomeration has had a positive impact on the urban manufacturing growth in the northern cities studied. An econometric model was established to relate agglomeration with manufacturing growth. LTYhe result showed thta industry-related specialization had a positive effect in the manufacturing growth. For the larger cities (DF, Monterrey y Guadalajara), industry specialization was an important determinant of manufacturing growth.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
2854.
Find related papers by JEL classification: O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity L6 - Industrial Organization - - Industry Studies: Manufacturing
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