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Industrial development under institutional frailty: the development of the Mexican textile industry in the nineteenth century

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  • Gómez-Galvarriato, Aurora

Abstract

Modern textile manufacture appeared early in Mexico and grew continuously through the 19th century. Yet, it did not translate into a successful industrialization process as a result of naturally endowed high transportation costs and institutional frailty: a concept that encompasses institutional uncertainty, weakness and fragmentation. Institutional frailty generated a captured tariff policy that gave low effective protection to the industry, a backward financial market that limited resources available for industrial growth, and increased transportation costs through inter-state tariff barriers. High transportation costs fragmented the national market and as a result, the textile industry grew geographically dispersed.

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  • Gómez-Galvarriato, Aurora, 1999. "Industrial development under institutional frailty: the development of the Mexican textile industry in the nineteenth century," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 17(S1), pages 191-223, March.
    • Handle: RePEc:cup:reveco:v:17:y:1999:i:s1:p:191-223_00
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