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Is the impact of public investment neutral across the regional income distribution? Evidence from Mexico

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  • Joan Costa Font
  • Eduardo Rodriguez Oreggia

    (Universitat de Barcelona)

Abstract

This paper investigates the contribution of public investment to the reduction of regional inequalities, with a specific application to Mexico. We use quantile regressions to examine the impact of public investment on regional disparities according to the position of each region in the conditional distribution of regional income. Results confirm the hypothesis that regional inequalities can indeed be attributed to the regional distribution of public investment, where the observed pattern shows that public investment mainly helped to reduce regional inequalities between the richest regions.

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Bibliographic Info

Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 113.

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Length: 29 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:bar:bedcje:2004113

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Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
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Cited by:
  1. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central Government's Infrastructure Investment across Chinese Regions: A Dynamic Spatial Panel Data Approach," MPRA Paper 50407, University Library of Munich, Germany.
  2. Jean-Paul Faguet & Mahvish Shami, 2008. "Fiscal policy and spatial inequality in Latin America and beyond," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 27162, London School of Economics and Political Science, LSE Library.

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