THE STEADY STATE OF THE MEXICAN ECONOMY

During the last three decades the Mexican economy has experienced a decresing growth rate of capital labour, however, was decreasing more rapidly than the growth rate of capital. Does this mean that the GPD growth rate could be explained by capital better than by labor? Has tachnological change been present during this period? Based on the historical performance of the Mexican economy, it is possible to determine the level of the technological change and to estimate the steady state of the economy. Using the Solow Growth Model, in which we have a Cobb-Douglas production function with technology, this paper provides estimates of technological change and determines tha balance growth path of the economy, a situation in which capital and output grow at a constant rate: the steady state of the economy.