Rising profit share in Mexican manufacturing hinders capital accumulation, study finds.
Mexican manufacturing has seen profits rise while capital accumulation has stayed flat. This was due to a decrease in output compared to capital, leading to a gap between rising profits and falling profit rates. High profitability in Mexico did not limit accumulation, but increased US profits negatively impacted Mexican accumulation. The study looked at 17 manufacturing industries from 1992 to 2019 to find these results.