Dysfunctional Firm Dynamics and Mexico's Dismal Productivity Performance.
Over the last three decades, Total Factor Productivity growth in Latin America has disappointed and informality persisted. To shed light on this outcome, we exploit a unique database (by Latin American standards) for Mexico, a country where manufacturing exports grew from 7 to 33 per cent of GDP, bu...
| Publicado en: | Economía Vol. 23; no. 1; pp. 283 - 311 |
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| Autores principales: | , |
| Formato: | Artículo |
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London School of Economics & Political Science
2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=182276530&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 182276530 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 15297470 N8H jtl: Economía issn: 15297470 maglogo: N pubinfo: dt: 2024 vid: 23 iid: 1 pid: 66142 pub: London School of Economics & Political Science artinfo: ui: 182276530 10.31389/eco.461 ppf: 283 ppct: 28 formats: fmt: – @attributes: type: T – @attributes: type: P size: 3.6MB tig: atl: Dysfunctional Firm Dynamics and Mexico's Dismal Productivity Performance. aug: au: Fentanes, Oscar Levy, Santiago affil: Universidad Carlos III de Madrid (UC3M), ES Brookings Institution, US su: Databases Gross domestic product sug: subj: Databases Gross domestic product keyword: Aggregate productivity firm dynamics informality manufacturing Aggregate productivity firm dynamics informality manufacturing ab: Over the last three decades, Total Factor Productivity growth in Latin America has disappointed and informality persisted. To shed light on this outcome, we exploit a unique database (by Latin American standards) for Mexico, a country where manufacturing exports grew from 7 to 33 per cent of GDP, but labor informality barely changed, firm informality increased, and TFP growth was negative. We construct a 20-year panel and analyze firm dynamics from two perspectives, the formal-informal and the sector composition of the economy. In the first, case we show that high productivity formal firms exited; surviving firms hardly grew, and their productivity fell because more informalized than formalized; and entrants were less productive than survivors, mostly because of large informal entry. In the second case we show that while manufacturing performed relatively better than services and commerce, its contribution to TFP was modest because informality persisted in this sector; and that despite spectacular growth of manufacturing exports, the country de-industrialized. We document that for TFP, the formal-informal composition of the economy is more important than its sector composition. While our insights are based on Mexican data, they may be relevant to countries in Latin America and other regions characterized by large informal sectors. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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