The rate of growth of productivity in Mexico, 1850-1933: Evidence from thecotton textile industry

This article employs previously unused data sources and techniques in order to estimate labour productivity and total factor productivity in the Mexic an cotton textile industry over the period 1850-1933 Our findings indicate: (1) substantial productivity growth prior to the Porfiriato; (2) rapid pro ductivity growth throughout the Porfiriato; (3) a swift, though incomplete, recovery from the Revolution during the 1920s; and, (4) an insignificant i mpact on productivity from the Great Depression. We also find evidence that the large, joint stock, limited liability firms that were founded during t he Porfiriato had higher levels of total factor productivity than privately owned firms, but only for a short period of time, which suggests that thes e firms might have been sub-optimally large. Our results also indicate that labour markets in Porfirian Mexico were efficient. This suggests that manu facturers may not have had the monopsony power in labour markets that the l iterature indicates.