Regional distortions in resources allocation and manufactures productivity in Mexico

Authors

  • Pedro J. Martínez Alanis El Colegio de México

DOI:

https://doi.org/10.24201/ee.v27i1.96

Keywords:

non-aggregative growth theory, resource misallocation, total factor productivity, regional development

Abstract

This paper decomposes the regional effects of resource misallocation on aggregate total factor productivity (TFP), as a variant of the Hsieh and Klenow (2009a) model. Using establishment level data from the 2004 Mexican Economic Census, I calculate the potential regional TFP gains in Manufacturing. The results suggest that: (i) capital misallocation is the primary source of regional misallocation in the sector; and (ii) resource misallocation within regions is the most important component in manufacturing TFP gains.

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Published

2012-01-01

How to Cite

Martínez Alanis, P. J. (2012). Regional distortions in resources allocation and manufactures productivity in Mexico. Estudios Económicos De El Colegio De México, 27(1), 3–59. https://doi.org/10.24201/ee.v27i1.96

Issue

53-vol. 27, no. 1, january-june, 2012

Section

Articles