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- Title
Productivity and agglomeration economies in the manufacturing of the metropolitan areas of Mexico, 1998–2018.
- Authors
Prudencio‐Vázquez, Jaime A.; Fernandez Marquez, Esteban; Rubiera Morollón, Fernando
- Abstract
Mexico has experienced intense urbanization in recent decades. Although all the metropolitan areas of the country have grown, the size generated by the megalopolis of the Valle de México is especially relevant since it is able to generate more intense agglomeration economies than those of the rest of the urban concentrations. This heterogeneity in the urban structure of the country makes the analysis of the effect of agglomeration economies on productivity for the Mexican case especially interesting. Through a panel model with fixed effects, we studied the effects of agglomeration economies on labor productivity of the manufacturing industry in the metropolitan municipalities of Mexico. We propose an adaptation of the model of Combes (2000) to isolate the effects of localization economies though a specialization index and urbanization economies though an index of economic diversity and occupational density. Our results indicate that specialization and the level of economic diversity clearly contribute to explaining the productivity levels of manufacturers among metropolitan municipalities.
- Subjects
MEXICO; ECONOMIES of agglomeration; METROPOLITAN areas; FIXED effects model; ECONOMIC specialization; LABOR productivity; MEGALOPOLIS
- Publication
Regional Science Policy & Practice, 2022, Vol 14, Issue 5, p1188
- ISSN
1757-7802
- Publication type
Article
- DOI
10.1111/rsp3.12451