OECD Economics Department Working Papers

ISSN: 
1815-1973 (online)
DOI: 
10.1787/18151973
Hide / Show Abstract
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Boosting Growth and Reducing Informality in Mexico You or your institution have access to this content

English
Click to Access: 
    http://oecd.metastore.ingenta.com/content/5js4w28dnn28-en.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/boosting-growth-and-reducing-informality-in-mexico_5js4w28dnn28-en
  • READ
Author(s):
Sean Dougherty1
Author Affiliations
  • 1: OECD, France

06 Mar 2015
Bibliographic information
No.:
1188
Pages:
44
DOI: 
10.1787/5js4w28dnn28-en

Hide / Show Abstract

Mexico has embarked on a bold package of structural reforms that will help it to break away from three decades of slow growth and low productivity. Major structural measures have been legislated to improve competition, education, energy, the financial sector, labour, infrastructure and the tax system, among many, and implementation has started in earnest. If fully implemented, these reforms could increase annual trend per capita GDP growth by as much as one percentage point over the next ten years, with the energy reforms having the most front-loaded effects. Beyond this, a second wave could go further to tackle other structural bottlenecks. These challenges include reducing stringent regulation – particularly at the local level – and addressing corruption and weak enforcement of legal rights. The justice system is often slow and inefficient. And in the agricultural sector, strict land use restrictions and the structure of subsidies promote inefficiency. Moving even closer towards OECD best practices could increase potential growth by another percentage point annually.
Keywords:
legal institutions, economic growth, productivity, regulatory policies, structural reforms
JEL Classification:
  • D2: Microeconomics / Production and Organizations
  • F1: International Economics / Trade
  • H4: Public Economics / Publicly Provided Goods
  • K4: Law and Economics / Legal Procedure, the Legal System, and Illegal Behavior
  • L1: Industrial Organization / Market Structure, Firm Strategy, and Market Performance
  • O4: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity
 
Visit the OECD web site