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Financial Market Regulation, Imperfect Capital Markets, and Industrial Concentration: Mexico in Comparative Perspective, 1830-1930


  • Stephen Haber

    (Social Science History Institute. Stanford University. Palo Alto, CA. USA.)


This article argues that there is a strong relationship between the efficiency with which a country mobilized capital for industrial development and the industrial structure that country developed. Differences in capital market development were a function of government regulatory policies and the costs of obtaining information. The analysis suggests that the development of financial institutions was not endogenous to the process of economic growth. In the case of Mexico, tight government regulatory policies coupled with high information costs gave rise to highly imperfect capital markets, which in turn were transmuted into imperfections in product markets.

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  • Stephen Haber, 1998. "Financial Market Regulation, Imperfect Capital Markets, and Industrial Concentration: Mexico in Comparative Perspective, 1830-1930," Economía Mexicana NUEVA ÉPOCA, , vol. 0(1), pages 5-46, January-J.
  • Handle: RePEc:emc:ecomex:v:7:y:1998:i:1:p:5-46

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    References listed on IDEAS

    1. Atack, Jeremy, 1986. "Firm Size and Industrial Structure in the United States During the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 463-475, June.
    2. Gavin Wright, 1981. "Cheap Labor and Southern Textiles, 1880–1930," The Quarterly Journal of Economics, Oxford University Press, vol. 96(4), pages 605-629.
    3. Cárdenas, Enrique & Manns, Carlos, 1989. "Inflación y estabilización monetaria en México durante La Revolución," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(221), pages 57-79, enero-mar.
    4. Lamoreaux, Naomi R., 1986. "Banks, Kinship, and Economic Development: The New England Case," The Journal of Economic History, Cambridge University Press, vol. 46(03), pages 647-667, September.
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