Can Partial Growth Coalitions Build Pathways Out of the Middle-Income Trap? The Case of Querétaro, México

Abstract Although scholars often portray Mexico as caught in the “middle-income trap,” this description obscures important subnational variation patterns of economic development. We leverage by examining case Querétaro, a state with high levels structural transformation and growth since 1980s. reconstruct historical trajectory its two leading industries, automotive aerospace. observe that while both have cumulatively delivered real developmental gains, each also exhibits complex mix strengths weaknesses. further find these industries’ advancements hindrances over time appear closely related to kinds “partial” coalitions — groups actors from state, private firms, civil society organizations such labor unions which participate industry-level decision-making. Both industries saw periods “upgrading” when partial supporting them were expanding their cognitive diversity avoiding gross imbalances distribution power among members. They likewise experienced stagnation either those coalition conditions underwent major change. These findings suggest debates on escaping middle-income trap should consider how changes political affect policy models options.