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Poder de mercado en el sector manufacturero mexicano. Estimación con variables instrumentales

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  • Alejandro Castañeda Sabido

    (El Colegio de México)

Abstract

This paper uses instrumental variables to estimate market power in the manufacturing sector at the two digit level for the 1970 1990 period. Similarly to Hall (1988), the identification assumption states that the rate of growth of total factor productivity is not intrinsically pro-cyclical. The fact that observed productivity is pro-cyclical is due to the presence of market power. The assumptions of optimization and constant returns to scale are maintained in order to be able to estimate the degree of market power. The results show ample evidence of market power in the Mexican manufacturing sector.

Suggested Citation

  • Alejandro Castañeda Sabido, 1996. "Poder de mercado en el sector manufacturero mexicano. Estimación con variables instrumentales," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 11(2), pages 211-236.
    • Handle: RePEc:emx:esteco:v:11:y:1996:i:2:p:211-236
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/255/257
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    Cited by:

    1. de Souza, João Paulo A. & Gómez-Ramírez, Leopoldo, 2018. "The paradox of Mexico's export boom without growth: A demand-side explanation," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 96-113.

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