Globalization, De-Industrialization and Mexican Exceptionalism 1750-1879

69 Pages Posted: 23 May 2008

See all articles by Aurora Gomez-Galvarriato

Aurora Gomez-Galvarriato

Center for Research and Teaching of Economics (CIDE) - Division of Economics

Rafael Dobado Gonzáles

Universidad Complutense Madrid - Department of Economic History

Jeffrey G. Williamson

Harvard University - Department of Economics, Laird Bell Professor of Economics, Emeritus; Honorary Fellow, University of Wisconsin - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

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Date Written: May 2007

Abstract

Like the rest of the poor periphery, Mexico had to deal with de-industrialization forces between 1750 and 1913, those critical 150 years when the economic gap between the industrial core and the primary-product-producing periphery widened to such huge dimensions. Yet, from independence to mid-century Mexico did better on this score than did most countries around the periphery. This paper explores the sources of Mexican exceptionalism with deindustrialization. It decomposes those sources into those attributable to productivity events in the core and to globalization forces connecting core to periphery, and to those attributable to domestic forces specific to Mexico. It uses a neo-Ricardian model (with non-tradable foodstuffs) to implement the decomposition, and advocates a price dual approach, and develops a new price and wage database 1750-1878. There were three forces at work that account for Mexican exceptionalism: first, the terms of trade and Dutch disease effects were much weaker; second, Mexico maintained secular wage competitiveness with the core; and third, Mexico had the autonomy to devise effective ways to foster industry. The first appears to have been the most important.

Keywords: Deindustrialization, globalization, growth, Mexico and trade

JEL Classification: F1, N7, O2

Suggested Citation

Gomez-Galvarriato, Aurora and Dobado Gonzáles, Rafael and Williamson, Jeffrey G., Globalization, De-Industrialization and Mexican Exceptionalism 1750-1879 (May 2007). Available at SSRN: https://ssrn.com/abstract=1136607

Aurora Gomez-Galvarriato (Contact Author)

Center for Research and Teaching of Economics (CIDE) - Division of Economics ( email )

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01210 Mexico, D.F.
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Rafael Dobado Gonzáles

Universidad Complutense Madrid - Department of Economic History ( email )

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Madrid, Madrid 28223
Spain

Jeffrey G. Williamson

Harvard University - Department of Economics, Laird Bell Professor of Economics, Emeritus ( email )

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Honorary Fellow, University of Wisconsin - Department of Economics

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