PRODUCTIVITY AND EFFICIENCY ANALYSIS OF MSMEs IN MEXICO

Abstract

The objective of this work is to empirically estimate the efficiency and productivity of MSMEs in Mexico, by measuring the impact that the amount of loans granted by banks and the number of workers in MSMEs have on the GDP they generate in the country. To do this, a double logarithmic NHPF production function with annual information is used, considering as a theoretical basis of this approach the argument of "money as an input in the production function". The results indicate a positive productivity (output elasticity) of work; Bank credit productivity was positive, although less than unity, and efficiency improved with returns on a scale of 1.54 to 1.65. This implies an improvement in the efficiency of scale in the MSMEs in Mexico, mainly due to the increase in productivity of the labor force; although it is insufficient when considering that this is required with increasing competencies.

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