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Economic Complexity and Regional Manufacturing Performance in Mexico, 2004-2019

Author

Listed:
  • Manuel Gómez-Zaldívar

    (Universidad de Guanajuato)

  • Fernando Gómez-Zaldívar

    (School of Government and Public Transformation, Tecnológico de Monterrey)

Abstract

The development of Mexico's manufacturing sector has progressed unevenly across regions and industry groups, with the underlying causes varying over time. Using data from 2004 to 2019, we find that all Mexican regions experienced increased specialization and diversification. However, only those regions that shifted toward more complex manufacturing activities were able to expand their share of national manufacturing output. These findings underscore the critical role of industrial sophistication in shaping regional economic relevance. Consistent with prior research, our results highlight the importance of a clear and strategic industrial policy to support less dynamic regions. Such policy is essential for enabling structural transformation, fostering more balanced and inclusive economic growth, and overcoming persistent institutional and productive constraints that continue to hinder regional development.

Suggested Citation

  • Manuel Gómez-Zaldívar & Fernando Gómez-Zaldívar, 2025. "Economic Complexity and Regional Manufacturing Performance in Mexico, 2004-2019," Working Paper Series of the School of Government and Public Transformation 4, School of Government and Public Transformation, Tecnológico de Monterrey.
    • Handle: RePEc:gnt:wpaper:4
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    File URL: https://egobiernoytp.tec.mx/sites/default/files/2025-07/wp4_economic_complexity_mexico.pdf
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    Keywords

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    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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