Technological Adoption: A Case Study of the Automotive Industry in Mexico.

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Abstract
In Mexico and many other manufacturing countries, the automotive industry is considered a strategic pillar of the economy due to the many perceived benefits it brings with it. Many would argue that we are on the cusp of the fourth industrial revolution with the advent of artificially intelligent systems, understood as more efficient forms of automation. Due to the well-defined tasks and clear goals inherent in manufacturing jobs, they are believed to be the most susceptible to automation, and thus, the most at-risk for replacement. In this sense, examining how the Mexican state has contended with the introduction of new technologies in the past can provide useful tools for predicting its future. Through a case study of the automotive industry in Mexico, this paper will examine (1) how the state has influenced and responded to the industry through the use of public policy, and (2) what socioeconomic impact this has had on its development. Through the enactment of executive decrees, the Mexican government found limited success in terms of trade. However, this approach seemed to have no effect on employment rates, poverty levels, the Gini index or income shares within different sectors of the Mexican population. This is because not focusing on capacity building created a self-reinforcing vicious cycle in Mexico wherein low levels of technological capabilities constrained the expansion of the automotive sector and, as a result, most new employment in Mexico arose in low-productivity and low-income sectors of the economy. This paper concludes that learning how to adopt new technologies while also assimilating new knowledge and expertise holds the key to Mexico’s future success

Description

Type of resource text
Date created 2019

Creators/Contributors

Author Ayala-Talavera, Monica
Degree granting institution Stanford University, Center for Latin American Studies

Subjects

Subject technological adoption
Subject automotive industry
Subject mexico
Subject manufacturing
Subject public policy
Subject Stanford Center for Latin American Studies
Genre Thesis

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User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
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This work is licensed under a Creative Commons Attribution Non Commercial No Derivatives 3.0 Unported license (CC BY-NC-ND).

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Preferred Citation
Ayala-Talavera, Monica. (2019). Technological Adoption: A Case Study of the Automotive Industry in Mexico. Stanford Digital Repository. Available at: https://purl.stanford.edu/nv940fr5093

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Stanford University, Center for Latin American Studies, Masters Degree Capstone Projects

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