The manufacturing industry in Mexico: an analysis of its productivity and efficiency, 1993-2020

In this work, the productivity and efficiency of the manufacturing industry in Mexico were estimated, using non-homogeneous double logarithmic production function (NHPF) and yearly data from 1993 to 2020. Money as an input in the production function was considered as a theoretical argument. During the period analyzed, the average output elasticities of labor and bank credit indicate a productivity of 1.5 and 0.05 (respectively), while the average returns to scale of the manufacturing sector set their efficiency at 1.55. The credit deficiency suggests a need for efficient financing allocation mechanisms for the sector.