How did import-substitution industrialization encourage the growth of Mexico City?

Mexico City was a primary beneficiary of Mexico’s policy of import-substitution industrialization (ISI), an economic strategy designed to foster domestic manufacturing by protecting local industries through taxes and tariffs on imported goods.12

This policy encouraged the growth of Mexico City in several key ways:

• Industrial Concentration: By incentivizing the production of goods domestically that were previously imported, the government spurred the expansion of manufacturing firms within the capital. By 1960, the city accounted for nearly half of the nation’s total manufacturing output.1
• Employment and Migration: The resulting expansion of industrial opportunities attracted a massive influx of workers from across the country. Thousands of migrants arrived in the capital seeking economic advancement, fueling rapid population growth that saw the metropolitan area expand from 3.1 million in 1950 to 14 million by 1980.1
• Infrastructure and Investment: As the center of this industrial push, the capital received significant government investment and infrastructure development, which further solidified its status as the nation’s economic hub.31

While ISI drove significant short-term growth, it also contributed to social challenges, including the proliferation of shantytowns and overcrowded tenements for the growing workforce.12