IDEAS home Printed from https://ideas.repec.org/a/sdo/regaec/v34y2025i3_1.html

The Transfer of Industrial Product Value to the Service Sector in Mexico's Economic Structure 2000–2018

Author

Listed:
  • Marquez Mendoza, Marco Antonio

  • García Gonzalez, Óscar Arturo

Abstract

In Mexico, the services sector plays a prominent role in productive activity due to the effects of manufacturing production oriented toward foreign trade. The growth of services has little impact on economic growth due to its low interaction with other sectors and the lack of industry maturity. However, a concerning aspect is the increase in manufacturing production, which heavily depends on the use of imported inputs. The research applies the Input-Output model methodology and Growth Analysis using the Input-Output Tables from 2000 and 2018 published by the OECD to examine the effect of production and the use of factors in the services sector on economic growth. The study concludes that, in the short term, the growth of services is driven by the industry's impact. In contrast, in the long term, services follow a growth path heavily reliant on imported intermediate inputs, similar to industry.

Suggested Citation

  • Marquez Mendoza, Marco Antonio & García Gonzalez, Óscar Arturo, 2025. "The Transfer of Industrial Product Value to the Service Sector in Mexico's Economic Structure 2000–2018," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 34(3), pages 1-22.
    • Handle: RePEc:sdo:regaec:v:34:y:2025:i:3_1
    DOI: 10.15304/rge.34.3.10071
    as

    Download full text from publisher

    File URL: https://doi.org/10.15304/rge.34.3.10071
    Download Restriction: no
    File URL: https://libkey.io/10.15304/rge.34.3.10071?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gerhard REINECKE & Anne POSTHUMA, 2019. "The link between economic and social upgrading in global supply chains: Experiences from the Southern Cone," International Labour Review, International Labour Organization, vol. 158(4), pages 677-703, December.
    2. Miyazawa, Kenichi, 1966. "Internal and External Matrix Multipliers in the Input-Output Model," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 7(1), pages 38-55, June.
    3. Elena Vidal & Alberto González Pandiella, 2024. "A review of Mexico’s participation in global value chains," OECD Economics Department Working Papers 1802, OECD Publishing.
    4. Kailan Tian & Erik Dietzenbacher & Richard Jong-A-Pin, 2019. "Measuring industrial upgrading: applying factor analysis in a global value chain framework," Economic Systems Research, Taylor & Francis Journals, vol. 31(4), pages 642-664, October.
    5. Michael Peneder & Gerhard Streicher, 2018. "De-industrialization and comparative advantage in the global value chain," Economic Systems Research, Taylor & Francis Journals, vol. 30(1), pages 85-104, January.
    6. Szyld, Daniel B, 1985. "Conditions for the Existence of a Balanced Growth Solution for the Leontief Dynamic Input-Output Model," Econometrica, Econometric Society, vol. 53(6), pages 1411-1419, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stanislav Shmelev & Harrison Roger Brook, 2021. "Macro Sustainability across Countries: Key Sector Environmentally Extended Input-Output Analysis," Sustainability, MDPI, vol. 13(21), pages 1-46, October.
    2. Huanjia Ma & Raquel Ortega-Argiles & Matthew Lyons, 2024. "UK levelling up R&D mission effects: A multi-region input-output approach," MIOIR Working Paper Series 2024-03, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    3. Cai-Xia Song & Cui-Xia Qiao, 2023. "Technology Importation, Institutional Environment and Industrial Upgrading: Evidence from China," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(1), pages 23-45, January.
    4. Haisheng Hu & Pikalo Jernej, 2025. "Exploring the Impact of the Belt and Road Initiative on Sustainable Development Goals 8 and 9: Insights From Four European Union Countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(6), pages 8251-8273, December.
    5. Martin Labaj & Stracova Erika, 2019. "Drivers of Deindustrialisation: Sub-system Analysis of Internationally Fragmented Production Structures," Department of Economic Policy Working Paper Series 018, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    6. Kordalska, Aleksandra & Olczyk, Magdalena, 2023. "Determinants of functional specialisation in EU countries," Working Paper Forschungsförderung 287, Hans-Böckler-Stiftung, Düsseldorf.
    7. MARSCHINSKI Robert & DE AMORES HERNANDEZ Antonio & AMOROSO Sara & BAUER Peter & CARDANI Roberta & CSEFALVAY Zoltan & GENTY Aurelien & GKOTSIS Petros & GREGORI Wildmer & GRASSANO Nicola & HERNANDEZ GUE, 2021. "EU competitiveness: recent trends, drivers, and links to economic policy: A Synthesis Report," JRC Research Reports JRC123232, Joint Research Centre.
    8. Michael Peneder & Nicole Schmidt-Padickakudy & Anna Strauss-Kollin & Stefan Weingärtner, 2018. "Österreichs Wettbewerbsfähigkeit im internationalen Vergleich," WIFO Working Papers 565, WIFO.
    9. Sarah Cook & Uma Rani, 2025. "Platform Work in Developing Economies: Can Digitalisation Drive Structural Transformation?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 68(2), pages 395-416, June.
    10. Piaggio, Matías & Alcántara, Vicent & Padilla, Emilio, 2015. "The materiality of the immaterial," Ecological Economics, Elsevier, vol. 110(C), pages 1-10.
    11. Michael Peneder & Matthias Firgo & Gerhard Streicher, 2019. "Stand der Digitalisierung in Österreich," WIFO Studies, WIFO, number 61654.
    12. Michael Peneder, 2026. "Europäische Industriepolitik im Wandel," WIFO Monatsberichte (monthly reports), WIFO, vol. 99(2), pages 71-81, February.
    13. Wildauer, Rafael & Kohler, Karsten & Aboobaker, Adam & Guschanski, Alexander, 2023. "Energy price shocks, conflict inflation, and income distribution in a three-sector model," Energy Economics, Elsevier, vol. 127(PB).
    14. Kayoko Shironitta & Shunsuke Okamoto & Shigemi Kagawa, 2019. "Cross-country analysis of relationship between material input structures and consumption-based CO2 emissions," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 533-554, October.
    15. Hu, Xiaotian & Yin, Xiaopeng, 2025. "Understanding the product structure of exporters: The role of intellectual property protection in export origins," Journal of Asian Economics, Elsevier, vol. 100(C).
    16. Tao Sun, 2024. "Systemic importance of financial services and insurance sectors: a world input–output network analysis," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(1), pages 63-96, January.
    17. Boris Hošoff & Erika Majzlíková, 2025. "UK participation in manufacturing global value chains," International Economics and Economic Policy, Springer, vol. 22(4), pages 1-34, October.
    18. Françoise Okah Efogo, 2020. "Does trade in services improve African participation in global value chains?," African Development Review, African Development Bank, vol. 32(4), pages 758-772, December.
    19. Vasco Carvalho, 2007. "Aggregate fluctuations and the network structure of intersectoral trade," Economics Working Papers 1206, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2010.
    20. Bowei Cai & Jiangmin Yang & Gengzhi Huang, 2023. "Spatiotemporal Dynamics in Economic, Social, and Environmental Upgrading in China: Coupling Coordination and Influencing Factors," Sustainability, MDPI, vol. 16(1), pages 1-23, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sdo:regaec:v:34:y:2025:i:3_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marisa Chas-Amil (email available below). General contact details of provider: https://edirc.repec.org/data/feusces.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.