Roberto Duran Fernandez
Transport Studies Unit - Oxford University Centre for the Environment
Working paper N° 1031
January 2008
This paper introduces a convergence analysis of productivity growth in the manufacturing sector in Mexico using regional data from the National Economic Census 1999 and 2004. The absolute convergence analysis indicates that regional productivity growth follows a slow convergence trajectory. However, a conditional convergence analysis indicates that current productivity gaps can be directly attributed to divergences in the industrial profile of the regional economy as well as to differences in infrastructure endowments. The results of the paper suggest that productivity gaps originated by the liberalisation reforms of the 1980s and 1990s will be exhausted in a term of 25 years approximately. The innovation of this paper is the extension of a convergence analysis to the industrial sector. The use of regional data improves the details of the analysis and allows the identification of growth patterns that had not been previously identified. Finally, it applies innovative metrics to model the industrial profile of a region and the value of transport infrastructure.
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