Informality, Productivity and Growth in Mexico, 2000.Q2-2014.Q4

Abstract

The huge growth of the informal sector, the labor market relief valve, has conditioned the low Mexican economic growth since the early 1980´s. From a Lewis (1954) model´s review, we propose that the growth of informality has limited economic growth, through the systematically factorial productivity reduction. A VECM(4) supports evidence about the factorial productivity reduction by the informal sector growth, associated with slow Mexican economic growth to perpetuate the productivity vicious circle too hard to break.

Keywords

• Informalidad
• Crecimiento Económico
• Productividad Factorial Total
• Exogeneidad Débil
• Vector de Corrección de Errores