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This paper analyzes a problem that proves crucial for the economic development of Mexico: slow economic growth and the subsequent inability to generate necessary employment. On the basis on Kaldorian growth theory, it is supposed that this problem is the result of economic policy errors, in essence the abandonment of active industrial policy in favor of structural change and economic development. Evidence is provided which highlights the high correlation between slow economic growth and slow growth in manufacturing output, a result consistent with the findings of other researchers. Having implemented an active industrial policy, the growth rate in the manufacturing sector would prove greater than that observed and would improve global economic development. Given the importance of this type of industrial policy, this paper outlines the reasons why the policy was abandoned and suggests that it be reinstated. [ABSTRACT FROM AUTHOR]

This paper has the purpose of showing that after the first years of North America Free Trade Agreement (NAFTA) operations, Mexico's northern border states have been benefited differentially by improving their economic integration to United States and Canada, conducting to a distinct ranking of productive capabilities within this region. It is shown that after this restructuring process, winners are not necessarily those entities with prior best economic performance. Particularly, considering the employment growth Baja California, appears as the great winner and Sonora as the loser. [ABSTRACT FROM AUTHOR]