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Spatial dimensions of trade liberalization and economic convergence : Mexico 1985-2002

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  • Aroca, Patricio
  • Bosch, Mariano
  • Maloney, William F.

Abstract

This paper studies the spatial dimension of growth in Mexico over the past three decades. The literature on regional economic growth shows a decrease in regional dispersion from 1970 to 1985, and a sharp increase afterward coinciding with the trade liberalization of the Mexican economy. Using spatial econometric, tools the authors analyze how the process of convergence/divergence has mapped spatially and whether it makes sense to talk about spatial regions in Mexico. Although the rich North-poor South dichotomy has dominated this phenomenon, interesting patterns emerge. Namely the distribution of growth after Mexico's post-liberalization seems to be much less associated with distance to the United States than the authors had initially expected.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3744.

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Date of creation: 01 Oct 2005
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Handle: RePEc:wbk:wbrwps:3744

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Keywords: Economic Theory&Research; Urban Governance and Management; Regional Governance; Inequality; Economic Conditions and Volatility;

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  1. Bernstein, Jeffrey R. & Weinstein, David E., 2002. "Do endowments predict the location of production?: Evidence from national and international data," Journal of International Economics, Elsevier, Elsevier, vol. 56(1), pages 55-76, January.
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Maloney, William F. & Azevedo, Rodrigo R., 1995. "Trade reform, uncertainty, and export promotion: Mexico 1982-88," Journal of Development Economics, Elsevier, Elsevier, vol. 48(1), pages 67-89, October.
  4. John Luke Gallup & Alejandro Gaviria & Eduardo Lora, 2003. "Is Geography Destiny? Lessons from Latin America," World Bank Publications, The World Bank, number 14454, August.
  5. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics, Universitat de Barcelona. Espai de Recerca en Economia 12, Universitat de Barcelona. Espai de Recerca en Economia.
  6. Hanson, Gordon H, 1997. "Increasing Returns, Trade and the Regional Structure of Wages," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(440), pages 113-33, January.
  7. de la Fuente, Angel, 1995. "The Empirics of Growth and Convergence: A Selective Review," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1275, C.E.P.R. Discussion Papers.
  8. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, Elsevier, vol. 37(2-3), pages 426-434, April.
  9. Behrens, Kristian & Gaigné, Carl & Ottaviano, Gianmarco Ireo Paolo & Thisse, Jacques-François, 2003. "Inter-regional and International Trade: Seventy Years After Ohlin," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4065, C.E.P.R. Discussion Papers.
  10. William Maloney & Daniel Lederman & Luis Servén, . "Lessons from NAFTA: For Latin America and the Caribbean," IDB Publications 59478, Inter-American Development Bank.
  11. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1586, C.E.P.R. Discussion Papers.
  12. Davis, Donald R. & David E. Weinstein & Scott C. Bradford & Kazushige Shimpo, 1997. "Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works," American Economic Review, American Economic Association, American Economic Association, vol. 87(3), pages 421-46, June.
  13. Bulli, Sandra, 2001. "Distribution Dynamics and Cross-Country Convergence: A New Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 226-43, May.
  14. Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, Springer, vol. 2(1), pages 27-59, March.
  15. Bode, Eckhardt & Bickenbach, Frank, 2002. "Markov or not Markov - this should be a question," ERSA conference papers ersa02p024, European Regional Science Association.
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Citations

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Cited by:
  1. Jacob Jordaan & Eduardo Rodriguez-Oreggia, 2012. "Regional growth in Mexico under trade liberalisation: how important are agglomeration and FDI?," The Annals of Regional Science, Springer, Springer, vol. 48(1), pages 179-202, February.
  2. Baylis, Kathy & Garduño-Rivera, Rafael & Piras, Gianfranco, 2012. "The distributional effects of NAFTA in Mexico: Evidence from a panel of municipalities," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(1-2), pages 286-302.
  3. Pablo Mejía-Reyes & Jeanett Campos-Chávez, 2011. "Are the Mexican States and the United States Business Cycles Synchronized? Evidence from the Manufacturing Production," Economia Mexicana NUEVA EPOCA, , vol. 0(1), pages 79-112, January-J.
  4. William F. Maloney & Felipe Valencia Caicedo, 2014. "Engineers, Innovative Capacity and Development in the Americas," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 011948, UNIVERSIDAD DE LOS ANDES-CEDE.
  5. Jacob A. Jordaan, 2012. "Agglomeration and the location choice of foreign direct investment: new evidence from manufacturing FDI in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(1), pages 61-97.
  6. William F. Maloney & Felipe Valencia Caicedo, 2012. "The Persistence of (Subnational) Fortune: Geography, Agglomeration, and Institutions in the New World," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 010017, UNIVERSIDAD DE LOS ANDES-CEDE.
  7. Alejandro Del Valle, 2013. "Is Formal Employment Discouraged by the Provision of Free. Health Services to the Uninsured ? Evidence From a Natural Experiment in Mexico," PSE Working Papers halshs-00838000, HAL.
  8. repec:hal:wpaper:halshs-00838000 is not listed on IDEAS
  9. Becker, Julia-Maria, 2014. "The Impact of the Crisis of 2008 on Women`s and Men`s Income in Mexico," MPRA Paper 57964, University Library of Munich, Germany.
  10. Maroula Khraiche, 2009. "Trade, Firm Structure, and Migration of Talent," Working papers, University of Connecticut, Department of Economics 2009-35, University of Connecticut, Department of Economics.
  11. García Callejas, Danny, 2011. "Per Capita GDP Convergence in South America, 1960-2007," BORRADORES DEPARTAMENTO DE ECONOMÍA 008983, UNIVERSIDAD DE ANTIOQUIA - CIE.
  12. Jaime Alfredo Bonet & Fabio Rueda, 2012. "Esfuerzo fiscal en los estados mexicanos," IDB Publications 64598, Inter-American Development Bank.
  13. Brock, Gregory & German-Soto, Vicente, 2013. "Regional industrial growth in Mexico: Do human capital and infrastructure matter?," Journal of Policy Modeling, Elsevier, Elsevier, vol. 35(2), pages 228-242.

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