Growth strategy in
Mexico
Tokyo Japan, May 2014
1
Contents
Introduction
TFP and contribution to growth according to the model KLEMS México
Total Economy
By Economic Activity
Economic Growth
Contribution of capital and labor services
Highlight issues
National Development Plan 2013-2018
Program to democratize productivity (PDP) 2013-2018
Objectives and strategies of the program
Growth Diagnostic According to the PDP
Conclusions
Introduction
The document presents the results of TFP indicators and growth contributions under
the KLEMS model, obtained by INEGI for the period 1990-2011.
It describes the plans for the Mexican economy growth under the
objectives and goals of the Program to Democratize Productivity (PDP),
within the National Development Plan 2013 – 2018 of the Mexican
Federal Government.
It is worth to mention that regarding the results obtained, INEGI
does not make judgments, analysis or issues opinions on the
subject.
The results of the PTF are articulated directly to the
evaluation and monitoring of the objectives of the PDP
Introduction
National
Development Plan
2013-2018
Federal Government
Program to
Democratize
Productivity
Growth
Strategy in
Mexico
4
Total Factor Productivity
TFPActivities
by
economic
activity
of Mexican economy
(average rates 1991-2011)
Mass media information
Financial and insurance services
Real estate services and tangible and intangible goods rental and leasing
Manufacturing
Electric power generation, transmission and distribution, water and gas…
Transportation, postal services and warehousing
Secondary Sector
Total Economy
Primary Sector
Tertiary Sector
Commerce
Temporary accommodation services and food and beverage preparation …
Construction
Legislative, governmental and justice administration activities, and …
Other services, except government activities
Mining
Educational services
Business support services, waste management and remediation services
Cultural and sporting recreation services and other recreational services
Health care and social assistance services
Professional, scientific and technical services
-5
2.71
1.54
0.24
-4.58
-4
-0.01
-0.02
-0.25
-0.35
-0.39
-0.39
-0.61
-0.63
-0.80
-0.90
-1.10
-1.25
-1.71
-1.75
-1.80
-2.11
-2.62
-3
-2
-1
Highest TFP
observed in mass
media with 2.71%
Total Economy TFP is
-0.39%
Lowest
TFP
is
observed
in
Professional Services
with -4.58%
0
1
2
3
5
4
Contribution of capital services
Contribution
of Capital
Services
Total
economy and
industrial
activities
(average rates 1991-2011)
Financial and insurance services
3.84
Professional, scientific and technical services
3.38
Tertiary Sector
2.30
Mining
2.29
Mass media information
2.22
Health care and social assistance services
2.21
Commerce
2.10
Real estate services and tangible and intangible goods rental and …
1.95
Other services, except government activities
Highest contribution
is Financial Services
with 3.84%
1.69
Educational services
1.63
Total Economy
1.58
Temporary accommodation services and food and beverage …
1.52
Business support services, waste management and remediation …
1.51
Cultural and sporting recreation services and other recreational …
Total
Economy
contribution is 1.58%
1.38
Electric power generation, transmission and distribution, water …
1.13
Secondary Sector
Lowest Contribution is
Legislative Activities
with 0.09%
1.10
Construction
1.03
Primary Sector
1.02
Transportation, postal services and warehousing
1.01
Manufacturing
0.83
Legislative, governmental and justice administration activities, and …
0
0.09
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Contribution of Labor Services
Contribution
of industrial
Labor Services
Total
economy and
Activities
(Average rates 1991-2011)
Business support services, waste management and remediation …
2.31
Professional, scientific and technical services
2.03
Health care and social assistance services
1.39
Legislative, governmental and justice administration activities, and …
1.39
Educational services
0.95
Other services, except government activities
0.94
Construction
0.90
Commerce
0.87
Transportation, postal services and warehousing
0.78
Mass media information
Highest contribution is
Support Services to
Business with 2.31%
0.75
Tertiary Sector
0.68
Financial and insurance services
Contribution to Total
Economy is 0.43%
0.52
Electric power generation, transmission and distribution, water …
0.45
Cultural and sporting recreation services and other recreational …
0.44
Total Economy
0.43
Secondary Sector
0.24
Temporary accommodation services and food and beverage …
Mining
Lowest contribution is
Manufacturing with
0.09%
0.21
0.20
Real estate services and tangible and intangible goods rental and …
Primary Sector
0.17
0.14
0.09
Manufacturing
0
0.5
1
1.5
2
7
2.5
Highlight Issues
For period 1990-2011 TFP of the Mexican economy is negative (-0.39%).
The activity with the highest TFP "Information in Mass Media" (2.71%),to which the
contribution of capital is 2.22% and of labor 0.75%.
The activity with the lowest TFP "Professional Services" (-4.58%), to which the contribution
of capital is 3.38% and of labor 2.03%
Thus the importance of these results in the monitoring of the objectives and goals
of the programs to increase productivity of the Government of Mexico.
8
National Development Plan 2013 – 2018
General
Objective
National
Goals
Moving Mexico towards its full potential
1.Mexico
in Peace
2.
Inclusive
Mexico
4.Prosperous
Mexico
5.Mexico with
Global
Responsibility.
1. Democratize Productivity
Transversal
strategies
2. Closer and Modern Government
3. Gender perspective.
9
Program to Democratize Productivity (PDP)
It defines objectives, strategies and courses of action to democratize productivity

It was published on August 30th 2013.

5 Objectives, 19 strategies y 115 courses of action.

It involves 20 agencies and entities of the
Public Federal Administration (PFA).

It should be reflected in the making of sector and special
Programs of the PFA.
Program to Democratize Productivity
Objectives and strategies of the PDP
Objective 1. Promoting efficient use and
allocation of production factors
 STRATEGIES
• Strengthening labor markets by promoting formal
employment.
• Promoting capital flows towards productive
endeavors.
• Promoting efficient use of the National territory.
• Efficient handling of natural capital and environment
protection.
• Augmenting investments in human capital.
Program to Democratize Productivity
Objectives and strategies of the PDP
Objective 2. Rising productivity of workers,
enterprises and producers.
 STRATEGIES
• Strengthening labor training activities
• Promoting entrepreneurship and productive
diversification (micro, small and medium enterprises).
• Rising productivity of small rural producers.
• Rising public Investment and promote private investment in
Science, Technology and Innovation (STI)
Program to Democratize Productivity
Objectives and strategies of the PDP
3. Strengthening business environment for enterprises
and producers.
 STRATEGIES
• Promoting a business environment to create formal
enterprises.
• Legal Certainty for economic agents and reducing levels of
insecurity in the productive sector.
• Rising efficiency of producers of key inputs to reduce
costs.
• Promoting investments in infrastructure.
• Taking advantage of Mexico’s integration into the world
economy.
Program to Democratize Productivity
Objectives and strategies of the PDP
4. Establishing public policies that raise productivity across
economic sectors.
 STRATEGIES
• Promoting an organized structural change.
• Strengthening the institutional set up to promote
public policies aimed to raise and democratize
productivity.
• Orientate programs and public outlays towards the
objective of rising and democratize productivity.
Program to Democratize Productivity
Objectives and strategies of the PDP
• 5. Strengthening design and evaluation of public
policies to democratize productivity
 STRATEGIES
• Implementing an agenda to articulate several programs.
• Active Involvement of society: workers, producers
• Business community, local governments and academic
Institutions.
• Consolidating the institutional framework to promote
productivity policies at federal, state and municipal.
Installation of:
 National Productivity
Committee
 Business Council for
Growth
 Active Involvement of
society in productivity
policies.
Growth Diagnostic according to the PDP
Which factors influence productivity?
Inefficient use
and allocation of
factors of
production
Weaknesses in
the business and
investment
environment
Inhibiting
productivity of
enterprises and
individuals
Sector Gaps
Conclusions
The TPF represents an statistical tool used by decision makers in
designing of economic and industrial policy of the country.
It is included in the Program to Democratize Productivity of the
NDP, as part of its cross-sectoral axis.
Mexico is the first country in Latin America to have a TPF indicator
under the KLEMS model, which was released through INEGI
Mexico joins the group of 30 nations which have a KLEMS
database, as it was released on August 12th, 2013
Conociendo México
01 800 111 46 34
www.inegi.org.mx
atencion.usuarios@inegi.org.mx
@inegi_informa
INEGI Informa