Abstract
The paper draws from Prebisch's hyphotesis of dynamic insufficiency, Harrod's dynamic theory, Kaldor-Verdoorn law and Thirlwall's endogenous growth theory and looks at the determinants of Mexico's economic growth and unemployment rates during the period 1974-2012. Our empirical estimation shows that a low rate of capital accumulation generates insufficient absorption of labour force, low labour productivity and a slow long-run growth rate of output.
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