Sources of productivity growth: Evidence from the Mexican manufacturing sector |
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Affiliation: | 1. Bureau of Economic and Business Research, University of Florida, 221 Matherly Hall, P.O. Box 117145, Gainesville, FL 32611-7145, United States;2. The World Bank, United States |
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Abstract: | We study labor and total factor productivity in the Mexican manufacturing sector for the 1994 to 2002 period. Labor productivity increased at an annual rate of 3 percent, while total factor productivity has null or negative growth depending on the methodology used. We conduct several robustness checks by providing alternatives measures of productivity growth. Moreover, we investigate the sources of productivity growth by studying the impact of international trade, investment, quality of the labor force and labor market institutions. |
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