Abstract

BARRANDEY CHAVIRA, Jonathan Andrey  and  ALARCON OSUNA, Moisés Alejandro. Profitability, and Technological Progress in the Mexican Manufacturing Sector: Panel Data Analysis, 2004-2019. Anál. econ. [online]. 2023, vol.38, n.97, pp.93-110.  Epub Feb 07, 2023. ISSN 2448-6655.  https://doi.org/10.24275/uam/azc/dcsh/ae/2022v38n97/barrandey.

The objective of the article is to analyze the effect of technological progress on the profit rate in the manufacturing industry in Mexico and by groups of low, medium, and high technology branches. A model of two technological sectors is developed and it is determined that the labor share in the product and technological progress affect the rate of profit. A panel data model is used to estimate the effects on profitability. With information from the 2004-2019 Economic Censuses, in general, for the industry in Mexico, it is shown that technological progress increased the rate of profit, while the effect of the skill premium had a negative impact. By technology groups, it is observed that low technology branches tend to substitute skill labor for capital, which increases profits, while in high technology, there is no evidence that capital and skills are complementary factors. In conclusion, in industry, the capital-skilled labor ratio has been increasing, however, there is a greater intensification of unskilled work complementary to fixed capital, which increases the rate of profit.

Keywords : Rate of profit; technological progress; labor share of income.

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