DEEP FACTORS OF LOW PRODUCTIVITY IN MEXICO

Abstract

This thesis explores the underlying factors contributing to low productivity in Mexico through the lens of Michael Todaro's economic development model. Key factors such as corruption, education, infrastructure, and access to credit are scrutinised. The analysis reveals pronounced disparities across sectors, with the agricultural sector lagging due to inadequate technology and training, while the manufacturing sector benefits from integration into global value chains. Despite these advancements, improvements in wages and working conditions remain limited. The study underscores the imperative for policies that enhance productivity across all sectors equitably. It calls for robust measures to address corruption, ensure macroeconomic stability, and implement sustainability, institutional, and governance reforms. These steps are crucial to fostering inclusive and sustainable economic growth in Mexico.