Multinational Corporations and Productivity Convergence in Mexico

Abstract

Abstract During the last 30 years, the developing countries have witnessed very different experiences regarding income and productivity growth and the extent to which they have converged on developed countries. Some, like the Asian newly industrialized countries (NICs), clearly are in a process of rapid convergence, whereas others, like most countries in Africa, show no sign of convergence. This indicates that the realization of the potentiality for productivity catch-up simply because of backwardness depends strongly on another set of causes, some of which are internal and others external to the countries themselves (see Abramovitz 1986).