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OECD Territorial Reviews: Morelos, Mexico

image of OECD Territorial Reviews: Morelos, Mexico

Morelos is one of the smallest states in Mexico, and close to Mexico City. It contains a number of economic and environmental assets in its territory, but has weak productivity levels. This review looks at how Morelos is seeking to boost its economy, particularly through inclusive growth policies such as enhancing human capital and promoting innovation. It also highlights areas of untapped potential for economic growth across rural areas and the tourism and environmental sectors, and offers suggestions for how Morelos could address governance challenges.

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Executive summary

Morelos, home to 1.9 million inhabitants, is located south of Mexico City. Its proximity to the metropolitan area of Valle de Mexico has favoured the development of the manufacturing sector as well as tourism and related services. Specialisation in manufacturing has doubled since 2003, and the share of gross value added (GVA) reached 23.4% in 2013, representing a resource for the economy, with the right framework conditions. In terms of employment, the economy is very diversified, with the manufacturing, agricultural, service, and public sectors each contributing to more than 10% of employment in Morelos. The state also contains several prominent research institutes that have contributed to more patents per capita than the Mexican average. Finally, natural and cultural amenities, as well as favourable climate conditions are potential drivers for tourism. An integrated policy approach is necessary to exploit the potential synergies amongst these diverse economic activities.

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