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Competitiveness And The Regional Efficiency Of The Mexican Service Sector

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  • Alejandra Trejo

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Abstract

It is argued that the competitive capacities from the regional and local point of view can be constructed, that in fact are tied to territorial policies and to the development of a territorial culture that integrates the local system of companies. Moreover a process of such nature can contribute to overcome the deterioration of backward territories. The construction of territorial competitiveness has to be one along the fundamental lines of action of sub-national governments. The existence of a solid service sector and some degree of specialisation in tertiary activities are among a number of territorial diversity of factors which need to be taken into account in relation to the creation of competitive capacities. In addition globalisation has presumably played a significant role in the productive restructuring of economies; within this the service sector has had over the years an increasing quantitative and qualitative importance in economic structures. This urges to evaluate the role of the third sector, in a context of economic globalisation, in the processes of constructing regional competitive capacities. This paper aims at providing a wide-ranging assessment of efficiency of the third sector at the regional level and its sources as well as an examination of the territorial structure of services and commerce in Mexico, specialisation patterns and productive structures. Our interest is to begin a line of study to analyse the efficiency of the Mexican tertiary sector by looking at the differences in regional performance and also the geographical determinants of these differentials. We will evaluate if there are clear patterns of concentration, specialisation and regional efficiency because of its impact on regional competitiveness. The regional efficiency of the service sector in Mexico in the period of NAFTA operation will be analysed. We employ state level data to examine technical efficiency´s differentials across regions and their determinants. The methodology includes Data Envelopment Analysis to measure the efficiency of the third sector which is the dependent variable in a reduced form model that links regional performance with a number of proxies for various types of agglomeration economies such as specialisation, urbanisation and internal economies of scale.

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p196.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa10p196

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  1. Wheeler, Christopher H., 2006. "Productivity and the geographic concentration of industry: The role of plant scale," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 313-330, May.
  2. Alvarez, Lia & Aguayo, Eva, 2003. "El Sector Servicios Privados en las Regiones Mexicanas: Un Modelo Econometrico," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 3(1).
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  7. Florin IONITA & Minodora URSACESCU & Sorin BURLACU, 2009. "Public Services as Poles of Regional Competitiveness in Sustainable Development," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(3), pages 552-565, July.
  8. Heshmati, Almas, 2000. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Working Paper Series in Economics and Finance 394, Stockholm School of Economics, revised 18 Oct 2001.
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  10. Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional mobility in the European Union," Applied Economics, Taylor & Francis Journals, vol. 38(19), pages 2237-2253.
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