ABSTRACT
Mexico's manufacturing sector was at the center of the development strategy during the import-substitution period and has continued to play a significant role since liberalization. This chapter focuses on the conditions of Mexico's manufacturing sector in order to assess structural changes since 1988. It addresses the macroeconomic issues that characterize the period since 1988 in terms of their impact on manufacturing. The chapter examines the industrial policy since 1988. It also focuses on the structural change that has occurred in this sector. After a drastic fall in manufacturing's real wages during the period 1982-1987, they improved significantly between 1988 and 1992. In spite of this significant recovery, it is important to stress that real wages for manufacturing, including for all of its groups and subgroups, are still below levels of the 1980s. The macroeconomic liberalization strategy reversed the most important conditions of the intended export-oriented industrialization to an import-oriented industrialization.
