Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83758 
Year of Publication: 
2013
Series/Report no.: 
Working Papers No. 2013-08
Publisher: 
Banco de México, Ciudad de México
Abstract (Translated): 
This study decomposes both the labor productivity gap and the labor productivity growth into the contributions of technical efficiency, capital deepening and technological change for Mexican manufacturing at the regional level. In order to do so, we apply a methodology that combines two literatures: the nonparametric construction of production frontiers and the general decomposition approach developed by Shorrocks (2012) which is based on the Shapley value. The results indicate that regional differences in labor productivity are mainly attributed to technical efficiency, and, to a lesser extent, to regional differences in capital deepening. Moreover, labor productivity growth was not homogeneous across regions over the period 1998-2008. In both the north and the south, the increase in labor productivity was mainly driven by technical efficiency, while technological change was the most influential factor on labor productivity growth in the central regions.
Subjects: 
Capital intensity
Labor productivity
Technical efficiency
Technological change
Manufacturing
Shapley value
JEL: 
J24
L60
R1
Document Type: 
Working Paper
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