The Fourth World KLEMS
Conference.
Determinants of Productivity in
Mexico.
Madrid, 23 may 2016.
Total Factor Productivity
Determinants of TPF?
What happened?
Steps to follow
Total Factor Productivity
-4.50
 The TFP 19912014 average,
stood at -0.33%
 The TFP in 2014
preliminary
decreases 0.19%.
2014P
2013
2012
2011
2010
2009
2008
2007
2006
-0.65
-3.56
2.76
1.71
0.43
0.80
-0.19
-1.38
-0.54
0.40
0.41
2004
2005
-1.34
-0.50
0.41
-2.50
-0.06
0.18
0.69
0.21
0.17
2003
2002
2001
2000
-1.60
0.00
1999
1998
1997
1996 -3.89
1995
1994
1993
-3.00
-0.95
-1.50
1992
1.50
1.16
3.00
1991
4.50
8.00
6.00
4.00
2.00
0.00
-6.00
-8.00
-3.89
-3.56
-6.18
-5.77
Gross Output
Total Factor Contribution
Total Factor Productivity
2014
2013
2012
2011
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
-2.21
1998
1997
1996
1995
1994
1993
1992
1991
-4.00
-2.29
2010
-2.00
A
Variables
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
K
L
E
M
S
B
A-B=C
T FP
1.16
0.17
-0.95
0.21
-3.89
2.76
0.69
0.18
-1.60
-0.06
-2.50
-1.34
-0.50
0.41
0.40
0.41
-0.54
-1.38
-3.56
1.71
0.80
0.43
-0.65
-0.19
(Weighted annual growth rates)
Production
5.40
4.90
2.20
6.33
-6.18
7.25
6.84
6.23
3.58
5.20
-1.12
0.62
2.33
4.50
3.08
5.51
3.16
0.87
-5.77
5.81
3.70
4.15
1.39
2.23
Capital
TIC
NO TIC
Labor
Energy
Materials
Services
Contribution
of factors
1.53
1.85
1.80
1.96
1.23
0.60
1.48
2.00
2.24
2.42
2.04
1.40
1.11
1.15
1.36
1.59
1.77
1.77
1.29
0.90
1.14
1.45
1.40
1.28
0.04
0.10
0.13
0.13
0.00
-0.05
0.05
0.12
0.19
0.29
0.27
0.12
0.07
0.08
0.08
0.12
0.20
0.12
0.11
0.10
0.05
0.10
0.09
0.10
1.49
1.75
1.67
1.84
1.23
0.65
1.43
1.88
2.05
2.14
1.77
1.28
1.04
1.06
1.28
1.47
1.57
1.64
1.17
0.80
1.10
1.35
1.31
1.18
0.50
0.97
0.76
0.72
-0.39
0.90
1.15
0.55
0.88
0.24
0.30
-0.04
1.37
0.87
-0.01
0.84
0.60
0.41
-0.48
0.34
0.32
0.45
0.06
0.15
0.21
0.06
0.05
0.13
-0.22
0.18
0.16
0.22
0.10
0.15
-0.04
0.01
0.15
-0.02
-0.04
-0.03
0.05
0.06
-0.03
-0.03
0.07
0.12
0.07
-0.03
1.42
1.19
0.32
2.28
-1.52
2.52
2.24
2.36
0.78
1.78
-0.70
0.21
0.42
1.53
0.87
1.72
0.51
0.35
-2.17
1.47
0.78
0.77
0.36
0.71
0.59
0.66
0.23
1.03
-1.39
0.29
1.11
0.92
1.17
0.66
-0.22
0.38
-0.22
0.57
0.50
0.98
0.77
-0.34
-0.82
1.43
0.58
0.92
0.15
0.30
4.24
4.73
3.15
6.12
-2.29
4.49
6.14
6.05
5.18
5.26
1.38
1.96
2.83
4.09
2.69
5.11
3.71
2.26
-2.21
4.11
2.90
3.71
2.04
2.42
Determinants of TFP?
 Capital service price.
 Capital productivity.
 Income (cost) per unit of capital.
 Price of labor service.
 Labor productivity.
 Unit labor cost.
80.0
4500000
70.0
4000000
60.0
3500000
3000000
50.0
2500000
40.0
2000000
30.0
1500000
20.0
1000000
10.0
500000
Capital service price
Capital productivity
Income per unit of capital
Gross Output
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
0
1991
0.0
Price of labor service
Labor productivity.
Unit labor cost
2014
2013
2012
0
2011
0.000
2010
200000
2009
5.000
2008
400000
2007
10.000
2006
600000
2005
15.000
2004
800000
2003
20.000
2002
1000000
2001
25.000
2000
1200000
1999
30.000
1998
1400000
1997
35.000
1996
1600000
1995
40.000
1994
1800000
1993
45.000
1992
2000000
1991
50.000
Gross Output
Services Capital and Labor Services, have a common point
with respect to the results shown from 1991 to 2014.
The common point is the crisis of 1995, when the economy
experienced a sharp drop in production have an impact on
these two factors.
Causing a structural change in the Mexican economy from
1995 production growth is not favorable to the ability of
the economy to generate better results in productivity.
The change observed in the total economy, is similar to the results of the
primary, secondary and tertiary sectors.
Consequently, this situation generated a structural change in the Mexican
economy.
In response, the federal government has recently boosted financial and labor reforms.
The first, find that the credit is accessible to all producers of | goods and
services.
The second seeks to guarantee the quality of labor through fair wages and well
paid.
Because current labor laws protect employment generation without promoting it.
70.0
160000
140000
120000
100000
80000
60000
40000
20000
0
60.0
50.0
40.0
30.0
20.0
10.0
Capital service price
Capital productivity
Income per unit of capital
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0.0
Gross Output
Price of labor service
Labor productivity.
Unit labor cost
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0
1999
0.000
1998
50000
1997
5.000
1996
100000
1995
10.000
1994
150000
1993
15.000
1992
200000
1991
20.000
Gross Output
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
2500000
2000000
1500000
1000000
500000
Capital service price
Capital productivity
Income per unit of capital
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
Gross Output
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0.000
2500000
2000000
1500000
1000000
500000
Price of labor service
Labor productivity.
Unit labor cost
Gross Output
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
60.0
2000000
50.0
1500000
40.0
30.0
1000000
20.0
500000
10.0
Capital service price
Capital productivity
Income per unit of capital
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
0
1991
0.0
Gross Output
50.000
2000000
40.000
1500000
30.000
1000000
20.000
500000
10.000
Price of labor service
Labor productivity.
Unit labor cost
Gross Output
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
0
1991
0.000
Capital
service
price
Total economy
Primary sector
Secondary
sector
Third sector
Capital
Income (Cost)
productivity
per unit of
capital
Price of
labor
service
Labor
productivity
Unit
labor
cost
∆
∆
∆
∇
∇
∇
∆
∆
∆
∆
∆
∆
∇
∇
∇
∆
∆
∆
∆
∇
∆
∆
∇
∆
What happened?
Indicators
Capital service
price
Capital productivity
Formula
𝑃𝐾 =
𝐸𝐵𝑂
𝑆𝑒𝑟𝑣𝐾
𝑃𝐾 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑠𝑒𝑟𝑣𝑖𝑐𝑒 𝑝𝑟𝑖𝑐𝑒𝑠
𝐸𝐵𝑂 𝐺𝑟𝑜𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑆𝑢𝑟𝑝𝑙𝑢𝑠
𝑆𝑒𝑟𝑣𝑘 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
𝜌𝐾 =
𝑌
𝑆𝑒𝑟𝑣𝐾
𝜌𝐾 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦
𝑌 𝐺𝑟𝑜𝑠𝑠 𝑉𝑎𝑙𝑢𝑒 𝐴𝑑𝑑𝑒𝑑
𝑆𝑒𝑟𝑣𝐾 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
Income per unit of
capital
𝐸𝐵𝑂
𝐶𝐾 =
Price of labor
service
Labor productivity
Unit labor cost
Components
𝑆𝑒𝑟𝑣𝐾
𝜌𝐾
𝐶𝐾 𝐼𝑛𝑐𝑜𝑚𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑜𝑓 𝑐𝑎𝑝𝑖𝑡𝑎𝑙
𝐸𝐵𝑂 𝐺𝑟𝑜𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑆𝑢𝑟𝑝𝑙𝑢𝑠
𝜌𝐾 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦
𝑆𝑒𝑟𝑣𝑘 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑠𝑒𝑟𝑣𝑖𝑐
𝑃𝐿 =
𝑅𝑒𝑚
𝑆𝑒𝑟𝑣𝐿
𝑃𝐿 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑙𝑎𝑏𝑜𝑟 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
𝑅𝑒𝑚 𝑅𝑒𝑚𝑢𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠
𝑆𝑒𝑟𝑣𝐿 𝐿𝑎𝑏𝑜𝑟 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
𝜌𝐿 =
𝑌
𝑆𝑒𝑟𝑣𝐿
𝜌𝐿 𝐿𝑎𝑏𝑜𝑟 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦
𝑌 𝐺𝑟𝑜𝑠𝑠 𝑉𝑎𝑙𝑢𝑒 𝐴𝑑𝑑𝑒𝑑
𝑆𝑒𝑟𝑣𝐿 𝐿𝑎𝑏𝑜𝑟 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
𝑅𝑒𝑚
𝑆𝑒𝑟𝑣𝐿
𝐶𝐿 =
𝑃𝐿
𝐶𝐿 𝑈𝑛𝑖𝑡 𝑙𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡
𝑅𝑒𝑚 𝑅𝑒𝑚𝑢𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑠
𝜌𝐿 𝐿𝑎𝑏𝑜𝑟 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦
𝑆𝑒𝑟𝑣𝐿 𝐿𝑎𝑏𝑜𝑟 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
Steps to follow.
Assess the impact of global value chains as part of the
Total Contribution of factors and their impact on the
Gross Value of Production.
Analyze other determinants of productivity, proposed
in the Bureau of Labor Statistics.
Consider opening that has the SNA 2008 in the following types of
assets, to adopt in the PTF-KLEMS:
 Machinery, weapons systems and equipment.
 Transport equipment.
 Computer hardware.
 Telecommunications equipment.
 Other machinery and equipment and weapon systems
nonresidential construction (other buildings and structures).
 Intellectual property products.
 Software and computer databases.
 Investigation and development.
 Other intellectual property products.
Conociendo México
01 800 111 46 34
www.inegi.org.mx
atencion.usuarios@inegi.org.mx
@inegi_informa
INEGI Informa