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The effect of infrastructures on total factor productivity and its determinants: a study on Mexico

Author

Listed:
  • Inmaculada C. Alvarez Ayuso

    (Universidad Autónoma de Madrid)

  • Osvaldo U. Becerril Torres

    (Universidad Autónoma del Estado de México)

  • Laura E. del Moral Barrera

    (Universidad Autónoma del Estado de México)

Abstract

The objective of this research is to identify the effect which infrastructures have on Total Factor Productivity, TFP, and on its components: technical change and efficiency change, of the Mexican states. The methodologies employed are Data Envelopment Analysis to obtain TFP and their components, and panel data econometrics, particularly through the estimation of a model of fixed effects, to determine the effect of the infrastructures. The results show in the first place that technical efficiency is of greater importance to the composition of TFP. Likewise, the existence of a favorable effect of the infrastructures on TFP and its factors is verified.

Suggested Citation

  • Inmaculada C. Alvarez Ayuso & Osvaldo U. Becerril Torres & Laura E. del Moral Barrera, 2011. "The effect of infrastructures on total factor productivity and its determinants: a study on Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 26(1), pages 97-122.
  • Handle: RePEc:emx:esteco:v:26:y:2011:i:1:p:97-122
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    File URL: http://estudioseconomicos.colmex.mx/archivo/EstudiosEconomicos2011/97-122.pdf
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    References listed on IDEAS

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    1. Javier Sánchez-Reaza, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Wiley Blackwell, vol. 33(1), pages 72-90.
    2. Joaquin Maudos & Jose Manuel Pastor & Lorenzo Serrano, 2003. "Human capital in OECD countries: Technical change, efficiency and productivity," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 419-435.
    3. Rodriguez-Oreggia, Eduardo & Rodriguez-Pose, Andres, 2004. "The Regional Returns of Public Investment Policies in Mexico," World Development, Elsevier, vol. 32(9), pages 1545-1562, September.
    4. Becerril-Torres, Osvaldo U. & Álvarez-Ayuso, Inmaculada C. & Del moral-Barrera, Laura E., 2010. "Do infrastructures influence the convergence of efficiency in Mexico?," Journal of Policy Modeling, Elsevier, vol. 32(1), pages 120-137, January.
    5. Patricia E. Beeson & Steven Husted, 1986. "Patterns and determinants of inefficiency in state manufacturing," Working Paper 8603, Federal Reserve Bank of Cleveland.
    6. Maudos, Joaquin & Pastor, Jose Manuel & Serrano, Lorenzo, 1999. "Total factor productivity measurement and human capital in OECD countries," Economics Letters, Elsevier, vol. 63(1), pages 39-44, April.
    7. Inmaculada Álvarez-Ayuso & M. Jesús Delgado-Rodríguez & M. del Mar Salinas-Jiménez, 2011. "Explaining TFP growth in the European Union at the sector level," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 14(3), pages 189-199, September.
    8. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    9. Jens Kaüger & Uwe Cantner & Horst Hanusch, 2000. "Total factor productivity, the east Asian miracle, and the world production frontier," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(1), pages 111-136, March.
    10. Rodriguez-Pose, Andres & Sanchez-Reaza, Javier, 2003. "Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).
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    Citations

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    Cited by:

    1. 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.

    More about this item

    Keywords

    total factor productivity; infrastructures; regional analysis and productivity and growth;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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