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Labor productivity in the export maquiladora industry of Mexico: a convergence analysis

Abstract

Abstract: The present study analyses the labor productivity performance in the export maquiladora industry of Mexico (EMI), by sectors and states, comparing the northern border region to the rest of Mexican states during the period 1990-1999. The study is based on conditional convergence analysis applied to labor productivity. The results showed that the states with higher labor productivity were Morelos, Jalisco and the state of Mexico. The pooled least squares showed the existence of absolute divergence in labor productivity for all sectors. Finally, the econometric estimates of conditional convergence did not show any impact of the qualified labor force variable. When including the rate of growth of capital formation and real wages the results exhibit a weak conditional convergence trend. The fixed effect panel model estimates suggest favorable state conditions for labor productivity growth in the states of Nuevo Leon, Baja California and Chihuahua.JEL Code: R; R11; LS

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