Regional disparities and determinants of growth in Mexico

Developing countries such as Mexico, in which profound processes of economic liberalization have taken place over the last few decades, offer fertile terrain for studies of regional disparities. Mexico has experienced a history of polarization between regions, the industrialized north and the underd...

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Bibliographic Details
Published in:The Annals of regional science 2005-06, Vol.39 (2), p.207-220
Main Author: Rodríguez-Oreggia, Eduardo
Format: Article
Language:English
Subjects:
Developing countries
Economic crisis
Economic geography
Economic growth
Economic reform
Free trade
GDP
Gross Domestic Product
Human capital
International trade
LDCs
Liberalization
Mexico
Per capita
Regional disparities
Regional studies
Regions
Regression analysis
Studies
Trade liberalization
Value added
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Summary:Developing countries such as Mexico, in which profound processes of economic liberalization have taken place over the last few decades, offer fertile terrain for studies of regional disparities. Mexico has experienced a history of polarization between regions, the industrialized north and the underdeveloped south, which have seen their differences widen, exacerbated through recurrent crises and liberalization processes. This paper looks at the convergence process among regions, examining which factors might affect regional growth, tracking the evolution of single units and identifying winners and losers. The evidence shows that northern states, bordering the USA, moved from a condition that might be described as "falling-behind" prior to liberalization to that of a "winner" after that process, while southern states went from the position of "catching-up" to that of "loser." Regional disparities in human capital would appear to be playing a decisive role in the existence of differences. [PUBLICATION ABSTRACT]
ISSN:0570-1864
1432-0592
DOI:10.1007/s00168-004-0218-5