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Regional industrial growth in Mexico: Do human capital and infrastructure matter?

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  • Brock, Gregory
  • German-Soto, Vicente

Abstract

A production function analysis of the 32 Mexican regions reveals almost no technological progress and human capital impact in Mexican industry over a 44 year period. While extensive growth is found prior to 1985, little evidence for extensive or intensive growth except for the labor input is found. Recently developed variables for infrastructure suggest neither transportation nor communications infrastructure is impacting on industrial growth in a significant way. Human capital is not yet important in the open era, but should be included as a separate factor of production in analyzing Mexican industrial growth though the impact is sensitive to how it is defined. Results appear robust to various regional groupings suggesting outlying regions need policies similar to the rest of the country.

Suggested Citation

  • Brock, Gregory & German-Soto, Vicente, 2013. "Regional industrial growth in Mexico: Do human capital and infrastructure matter?," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 228-242.
  • Handle: RePEc:eee:jpolmo:v:35:y:2013:i:2:p:228-242 DOI: 10.1016/j.jpolmod.2012.10.003
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    Cited by:

    1. José Aguilar-Retureta, 2015. "Regional income distribution in Mexico: new long-term evidence, 1895-2010," UB Economics Working Papers 2015/323, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.

    More about this item

    Keywords

    Mexico's regions; Long run industrial growth; Human capital; Infrastructure;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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