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Technical Efficiency, Technological Development, And The Labor Productivity Gap In Mexican Manufacturing

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  • Juan Carlos Chávez-Martín del Campo
  • Felipe de Jesús Fonseca-Hernández

Abstract

This paper applies a stochastic frontier approach to analyze the evolution of technical efficiency in Mexican manufacturing and its effect on the labor productivity gap among states over the period 1988-2008. The model allows for heterogeneity in technological development by introducing region-specific effects in the econometric specification. The main findings of our analysis are threefold. First, technical efficiency was both increasing and converging over time and across states in a context where labor productivity was also converging. Second, there are considerable differences in the levels of technological development of the north and the central regions with respect to the south that partially explains the labor productivity gap. Third, the dynamics of technical efficiency contributed to reduce inequality in productivity among states over the analyzed period.

Suggested Citation

  • Juan Carlos Chávez-Martín del Campo & Felipe de Jesús Fonseca-Hernández, 2013. "Technical Efficiency, Technological Development, And The Labor Productivity Gap In Mexican Manufacturing," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 43-58.
    • Handle: RePEc:eaa:eerese:v:13:y2013:i:2_4
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    References listed on IDEAS

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    Cited by:

    1. Juan Carlos Chávez Martín del Campo & Luis Fernando López Ornelas, 2014. "Un enfoque no paramétrico para la descomposición de la productividad del trabajo en la industria manufacturera regional," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 33-58, November.

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    More about this item

    Keywords

    Manufacturing; Mexican regions; Labor productivity; Stochastic frontier; Structural efficiency; Technical efficiency.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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