Trade liberalization and regional productivity growth: Some lessons from Mexico's Northern Border manufacturing after 20 years

Abstract

The analysis of productivity performance of the Mexican Northern Border offers an interesting case study for that objective. This is because it combines mobile growth factors due to regional reallocation of economic activity and, on the other hand, the fact that factors that are considered immobile in the literature such as education, infrastructure and specialization were initially localised in Central Mexico. We show that, throughout this period, in the Northern Border the accumulation of immobile factors and the efficiency in its advantage have been determining factors in its economic growth.