This article employs previously unused data sources and techniques in order to estimate labour productivity and total factor productivity in the Mexican cotton textile industry over the period 1850–1933. Our findings indicate: (1) substantial productivity growth prior to the Porfiriato; (2) rapid productivity growth throughout the Porfiriato; (3) a swift, though incomplete, recovery from the Revolution during the 1920s; and, (4) an insignificant impact on productivity from the Great Depression. We also find evidence that the large, joint stock, limited liability firms that were founded during the Porfiriato had higher levels of total factor productivity than privately owned firms, but only for a short period of time, which suggests that these firms might have been sub-optimally large. Our results also indicate that labour markets in Porfirian Mexico were efficient. This suggests that manufacturers may not have had the monopsony power in labour markets that the literature indicates.