Abstract

BROWN GROSSMAN, Flor  and  DOMINGUEZ VILLALOBOS, Lilia. Evolution of the Productivity in the Mexican Industry: An Application with the Malmquist Method. Inv. Econ [online]. 2004, vol.63, n.249, pp.75-100. ISSN 0185-1667.

We use the Malmquist index of Total Factor Productivity (TFP) to analyze the evolution of Mexican industrial productivity in two long periods, from 1984 to 1993, and 1994 to 2000. One important advantage of this index refers to the possibility to distinguish between the sources of TFP: efficiency or technical change. Moreover it does not require the assumption of constant returns on scale or perfect competition.

Altogether the manufacturing sector improved its position regarding productivity growth, although more accentuated in the second period and with smaller degree of dispersion. In relation to the components of TFP growth, the results of this study show an increase of the indices of technical progress in periods, but with differences. In the first period, changes in the efficiency did not happen. In contrast, in the next one the increase of the productivity is explained both by technical progress and an improvement of efficiency due to a movement towards the optimal scale.

In relation to the distribution of industries, our results suggest an unstable performance. Only one industry (electrical and electronic apparatuses) maintained both positive indices of the technical progress and efficiency in the two periods. The automotive industry, non methalic minerals and chemistry lost in efficiency in the second period. The textile industry passes from a negative TFP rate to positive one in technical progress and efficiency.

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