Regional Industrial Informality and Efficiency in Mexico, 1990-2013

Gregory Brock; Vicente German-Soto

doi:10.1016/j.jpolmod.2017.07.002

Regional Industrial Informality and Efficiency in Mexico, 1990-2013

Gregory Brock, Vicente German-Soto

Economics

Universidad Autonoma de Coahuila

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

The impact of electricity consumption on aggregate regional Mexican industrial labor productivity is examined using a stochastic production function. Electricity consumption is also used to gauge macroeconomic informality that varies greatly across regions with no geographic advantage in reducing it. Unlike prior research, persistent regional technical inefficiency is found that has little impact on reducing informality but may help reducing corruption. Although electricity consumption contributes positively to industrial labor productivity over time, Mexican industry has yet to transition to a much lower consumption/output ratio found in other countries. Regional policies supporting returns to human capital accumulation being better kept by workers while technical inefficiency is reduced are recommended.

Original language	American English
Journal	Journal of Policy Modeling
Volume	39
DOIs	https://doi.org/10.1016/j.jpolmod.2017.07.002
State	Published - Sep 2 2017

Keywords

Corruption
Electricity Consumption
Informal Economy
Mexican Industry

DC Disciplines

Growth and Development
Social and Behavioral Sciences
Regional Economics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.jpolmod.2017.07.002License: Unspecified

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title = "Regional Industrial Informality and Efficiency in Mexico, 1990-2013",

abstract = " The impact of electricity consumption on aggregate regional Mexican industrial labor productivity is examined using a stochastic production function. Electricity consumption is also used to gauge macroeconomic informality that varies greatly across regions with no geographic advantage in reducing it. Unlike prior research, persistent regional technical inefficiency is found that has little impact on reducing informality but may help reducing corruption. Although electricity consumption contributes positively to industrial labor productivity over time, Mexican industry has yet to transition to a much lower consumption/output ratio found in other countries. Regional policies supporting returns to human capital accumulation being better kept by workers while technical inefficiency is reduced are recommended.",

keywords = "Corruption, Electricity Consumption, Informal Economy, Mexican Industry",

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AU - Brock, Gregory

AU - German-Soto, Vicente

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N2 - The impact of electricity consumption on aggregate regional Mexican industrial labor productivity is examined using a stochastic production function. Electricity consumption is also used to gauge macroeconomic informality that varies greatly across regions with no geographic advantage in reducing it. Unlike prior research, persistent regional technical inefficiency is found that has little impact on reducing informality but may help reducing corruption. Although electricity consumption contributes positively to industrial labor productivity over time, Mexican industry has yet to transition to a much lower consumption/output ratio found in other countries. Regional policies supporting returns to human capital accumulation being better kept by workers while technical inefficiency is reduced are recommended.

AB - The impact of electricity consumption on aggregate regional Mexican industrial labor productivity is examined using a stochastic production function. Electricity consumption is also used to gauge macroeconomic informality that varies greatly across regions with no geographic advantage in reducing it. Unlike prior research, persistent regional technical inefficiency is found that has little impact on reducing informality but may help reducing corruption. Although electricity consumption contributes positively to industrial labor productivity over time, Mexican industry has yet to transition to a much lower consumption/output ratio found in other countries. Regional policies supporting returns to human capital accumulation being better kept by workers while technical inefficiency is reduced are recommended.

KW - Corruption

KW - Electricity Consumption

KW - Informal Economy

KW - Mexican Industry

U2 - 10.1016/j.jpolmod.2017.07.002

DO - 10.1016/j.jpolmod.2017.07.002

M3 - Article

SN - 0161-8938

VL - 39

JO - Journal of Policy Modeling

JF - Journal of Policy Modeling

ER -

Regional Industrial Informality and Efficiency in Mexico, 1990-2013

Abstract

Keywords

DC Disciplines

UN SDGs

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