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Regional economic growth in Mexico : recent evolution and the role of governance

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  • Weiss, Eli
  • Rosenblatt, David

Abstract

There has been substantial research in recent years examining the regional evolution of economic growth across states in Mexico -- with a particular focus on the post North American Free Trade Agreement period. There is also a vast literature using cross-country regressions to examine institutional determinants of economic growth, including government transparency, or"corruption,"as a key institutional variable. This paper uses more recently available data for Mexican states to both update the general state convergence/divergence literature, and incorporate into the analysis more recently developed state level indicators of institutional factors related to government transparency. The authors do not find a systematic relationship between measures of government transparency and gross domestic product per capita growth in Mexico during 2001-2005; however, they do find that corruption is negatively associated with the level of state gross domestic product per capita. The contrasting results may imply that more years of data are necessary to be able to establish statistically significant relationships between state growth rates and measures of corruption.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5369.

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Date of creation: 01 Jul 2010
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Handle: RePEc:wbk:wbrwps:5369

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Keywords: Governance Indicators; Achieving Shared Growth; Economic Theory&Research; Public Sector Corruption&Anticorruption Measures; Political Economy;

References

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  1. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
  2. Chiquiar, Daniel, 2005. "Why Mexico's regional income convergence broke down," Journal of Development Economics, Elsevier, vol. 77(1), pages 257-275, June.
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  4. Calderon, Cesar & Serven, Luis, 2004. "The effects of infrastructure development on growth and income distribution," Policy Research Working Paper Series 3400, The World Bank.
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  11. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," ULB Institutional Repository 2013/7364, ULB -- Universite Libre de Bruxelles.
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  17. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 681-712, August.
  18. Léonce Ndikumana & Mina Baliamoune-Lutz, 2008. "Corruption and Growth: Exploring the Investment Channel," UMASS Amherst Economics Working Papers, University of Massachusetts Amherst, Department of Economics 2008-08, .
  19. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 107(S6), pages S270-S293, December.
  20. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 7(3), pages 207-227, November.
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Cited by:
  1. 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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