FINANCIAL INNOVATION AND STRUCTURAL CHANGE IN THE EARLY STAGES OF INDUSTRIALIZATION: MEXICO, 1945-59.

The article assesses financial innovation and structural change in the early stages of industrialization based on the experience of the financial sector in Mexico from 1945-1959. A description of a traditional economy is included as is the transformation by which such an economy can become a developing economy through alterations in the production function. There are five ways, the article states, for financing innovation in developing economies, including self-financing, tax increases, direct financing, government securities, and indirect financing.