Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83734
Authors: 
Chiquiar, Daniel
Ramos-Francia, Manuel
Year of Publication: 
2009
Series/Report no.: 
Working Papers, Banco de México 2009-11
Abstract: 
We address the role that deep, structural factors may have as determinants of Mexico's economic growth. We argue that Mexico's poor growth performance appears to be associated not only with shorter-run events such as the lost decade of the eighties, but also with supply-side features of the economy that have been present for at least four decades. Mexico's low competitiveness and poor growth potential seem to reflect an institutional framework that tends to support rigid, non-competitive market structures, and incentives that promote the allocation of resources towards unproductive rent-seeking activities relatively more than into investment, production, and adoption of superior technologies. We present examples of input markets where we believe these issues are central. We conclude that solving this situation requires microeconomic policies that lead to fundamental changes in the incentive structure of the economy.
Subjects: 
competitiveness and growth
productivity
efficiency
comparative advantage
JEL: 
O31
O43
O12
Document Type: 
Working Paper
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