ECONOMIC COMPLEXITY OF THE SPECIAL ECONOMIC ZONES IN MEXICO: OPPORTUNITIES FOR DIVERSIFICATION AND INDUSTRIAL SOPHISTICATION

Abstract

This paper evaluates the potential for diversification and production sophistication of the states where the first three Special Economic Zones (EEZs) will be installed in Mexico. Using the methodology of economic complexity proposed by Hausmann, Hidalgo et al. (2014), economic activities are classified based on their complexity and a distance measure is estimated to identify the most viable manufacturing industries to be developed given the productive capabilities existing in each region. The results reveal the differences between the economic structures of each entity, as well as the particular opportunities for the states have to transform the structures; this is why these results are a valuable input for decision-making in the first stage of the model's implementation.