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Does local economic development really work? Assessing LED across Mexican municipalities

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  • Andrés Rodríguez-Pose
  • Eduardo I. Palavicini-Corona

Abstract

Local economic development (LED) strategies are increasingly being recommended as an alternative or a complement to traditional development strategies. However, beyond a limited number of areas where ‘best practices’ have been identified, there has been little systematic monitoring of whether LED really works. This paper uses a purpose-built database of 898 municipalities in Mexico in order to assess, using a quantitative approach, whether the implementation of seven different components of LED – development plan, sustainability, entrepreneurship, capacity building, participation mechanisms, development links, and autonomy – has delivered greater human development across Mexican local governments. The results of the analysis indicate that municipalities engaging in LED during the last two decades have witnessed significant improvements in human development, relative to those which have overlooked LED strategies. The increase in human development has been greatest for those local authorities which have pursued capacity building, the establishment of additional development links and which have drafted a development plan. Greater independence from federal or state initiative has, by contrast, been detrimental for changes in human development at the local level.

Suggested Citation

  • Andrés Rodríguez-Pose & Eduardo I. Palavicini-Corona, 2012. "Does local economic development really work? Assessing LED across Mexican municipalities," Papers in Evolutionary Economic Geography (PEEG) 1224, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2012.
    • Handle: RePEc:egu:wpaper:1224
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    Cited by:

    1. Rogerson Christian M., 2014. "Reframing place-based economic development in South Africa: the example of local economic development," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 24(24), pages 1-16, June.

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    More about this item

    Keywords

    local economic development (LED); human development; capacity building; participation; local authorities; local autonomy; Mexico;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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