Productive specialization and the divergence in productivity: The case of Mexico, 1982-2006

This paper studies the productivity performances of Mexico in international perspectiveduring the period 1982-2006. Mexico adopted a policy of economic liberalisation coupledby some market oriented structural reforms, after a long period of import substitution.However, growth in GDP per capita has been low. Comparing the Mexican economicperformance with those of other more developed and developing economies one canobserve the divergence of both GDP per capita and labour productivity, in relation to theOECD member countries and other Latin American economies.Productive and commercial specialisation has geared towards activities associated withglobal value chains that demand and incorporate very little local technological value andhave not necessarily translated into forward and backward linkages with the rest of theeconomy. There is a significant change in the composition of both output and labour amongsectors, and within them; the more dynamic sectors are those featuring a relatively lowerproductivity. Sectors oriented to the less dynamic domestic markets, feature a high andgrowing technological heterogeneity. Leading firms in these sectors record significantproductivity growth, thereby increasing productivity gaps among industries and sectors ofeconomic activity. Clearly, best productive and technology practices fail to diffuse acrossindustries and the informal sector of the economy is increased.