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Competitiveness And The Regional Efficiency Of The Mexican Service Sector


  • Alejandra Trejo



It is argued that the competitive capacities from the regional and local point of view can be constructed, that in fact are tied to territorial policies and to the development of a territorial culture that integrates the local system of companies. Moreover a process of such nature can contribute to overcome the deterioration of backward territories. The construction of territorial competitiveness has to be one along the fundamental lines of action of sub-national governments. The existence of a solid service sector and some degree of specialisation in tertiary activities are among a number of territorial diversity of factors which need to be taken into account in relation to the creation of competitive capacities. In addition globalisation has presumably played a significant role in the productive restructuring of economies; within this the service sector has had over the years an increasing quantitative and qualitative importance in economic structures. This urges to evaluate the role of the third sector, in a context of economic globalisation, in the processes of constructing regional competitive capacities. This paper aims at providing a wide-ranging assessment of efficiency of the third sector at the regional level and its sources as well as an examination of the territorial structure of services and commerce in Mexico, specialisation patterns and productive structures. Our interest is to begin a line of study to analyse the efficiency of the Mexican tertiary sector by looking at the differences in regional performance and also the geographical determinants of these differentials. We will evaluate if there are clear patterns of concentration, specialisation and regional efficiency because of its impact on regional competitiveness. The regional efficiency of the service sector in Mexico in the period of NAFTA operation will be analysed. We employ state level data to examine technical efficiency's differentials across regions and their determinants. The methodology includes Data Envelopment Analysis to measure the efficiency of the third sector which is the dependent variable in a reduced form model that links regional performance with a number of proxies for various types of agglomeration economies such as specialisation, urbanisation and internal economies of scale.

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  • Alejandra Trejo, 2011. "Competitiveness And The Regional Efficiency Of The Mexican Service Sector," ERSA conference papers ersa10p196, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p196

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    References listed on IDEAS

    1. J.L. Navarro & J.A. Camacho, 2001. "Productivity of the Service Sector: A Regional Perspective," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 123-148, January.
    2. Fabrizio Erbetta & Carmelo Petraglia, 2011. "Drivers of Regional Efficiency Differentials in Italy: Technical Inefficiency or Allocative Distortions?," Growth and Change, Wiley Blackwell, vol. 42(3), pages 351-375, September.
    3. Patricia E. Beeson & Steven Husted, 1986. "Patterns and determinants of inefficiency in state manufacturing," Working Paper 8603, Federal Reserve Bank of Cleveland.
    4. Wheeler, Christopher H., 2006. "Productivity and the geographic concentration of industry: The role of plant scale," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 313-330, May.
    5. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    6. Camagni, Roberto, 2002. "On the concept of territorial competitiveness: sound or misleading?," ERSA conference papers ersa02p518, European Regional Science Association.
    7. Peter Karl Kresl & Balwant Singh, 1999. "Competitiveness and the Urban Economy: Twenty-four Large US Metropolitan Areas," Urban Studies, Urban Studies Journal Limited, vol. 36(5-6), pages 1017-1027, May.
    8. Bannister, Geoffrey J. & Stolp, Chandler, 1995. "Regional concentration and efficiency in Mexican manufacturing," European Journal of Operational Research, Elsevier, vol. 80(3), pages 672-690, February.
    9. Florin IONITA & Minodora URSACESCU & Sorin BURLACU, 2009. "Public Services as Poles of Regional Competitiveness in Sustainable Development," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(3), pages 552-565, July.
    10. Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional mobility in the European Union," Applied Economics, Taylor & Francis Journals, vol. 38(19), pages 2237-2253.
    11. Alvarez, Lia & Aguayo, Eva, 2003. "El Sector Servicios Privados en las Regiones Mexicanas: Un Modelo Econometrico," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 3(1).
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