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Regional Convergence of Income and Labor Productivity in Mexico

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  • Alejandro Diaz-Bautista

    (COLEF)

Abstract

Economic growth continues to be a major objective of state governments in Mexico. What role do firm location, openness, education, and wage rates play in determining the ability of a state to increase the growth of its economy? This study examines the economic competitiveness of the Mexican states using location coefficients. This paper tries to bridge the gap between the macroeconomic issue of convergence on the aggregate income level and the microeconomic issue of labor productivity convergence on the industry and sectorial level. Resumen. El crecimiento económico continua siendo uno de los objetivos más importantes para los gobiernos estatales en México. ¿Cuál es el papel de la localización de las empresas, la apertura, la educación y los salaries en determinar la habilidad de los estados para fomentar el crecimiento de la economia? El estudio examina la competitividad de los estados en México mediante el uso de índices de localización. El estudio trata de cerrar la brecha entre el tema de la convergencia macroeconómica en el nivel agregado del ingreso y los temas microeconómicos de la convergencia de la productividad laboral a nivel sectorial e industrial.

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File URL: http://128.118.178.162/eps/urb/papers/0512/0512016.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Urban/Regional with number 0512016.

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Length: 18 pages
Date of creation: 30 Dec 2005
Date of revision:
Handle: RePEc:wpa:wuwpur:0512016

Note: Type of Document - pdf; pages: 18. Díaz-Bautista es economista del ITAM. Obtuvo el Doctorado y la Maestría en Economía en la Universidad de California, Irvine. Desde 1999 imparte cursos en el Colegio de la Frontera Norte y en la Universidad Iberoamericana del Noroeste, y desde 1995 fue profesor de Economía en la Universidad de California. Ha impartido conferencias en Estados Unidos, Canadá, Europa, Asia y en México, al igual que ha dedicado muchos años a la investigación en el campo de la Economía Internacional, Organización Industrial, y Crecimiento Económico. http://www.geocities.com/adiazbau/
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Web page: http://128.118.178.162

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Keywords: Economic Convergence; Labor Productivity; location coefficients; Mexico;

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  1. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
  2. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
  3. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  4. Broadberry, Stephen N, 1992. "Manufacturing and the Convergence Hypothesis: What the Long Run Data Show," CEPR Discussion Papers 708, C.E.P.R. Discussion Papers.
  5. Paul W. Bauer & Brian A. Cromwell, 1989. "The effect of bank structure and profitability on firm openings," Economic Review, Federal Reserve Bank of Cleveland, issue Q IV, pages 29-39.
  6. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
  7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  8. Gouyette, Claudine & Perelman, Sergio, 1997. "Productivity convergence in OECD service industries," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 279-295, August.
  9. R. Paci, 1996. "More similar and less equal. Economic growth in the European regions," Working Paper CRENoS 199609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  10. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  11. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  12. Alicia H. Munnell & Leah M. Cook, 1990. "How does public infrastructure affect regional economic performance?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 11-33.
  13. F. J.M. Meyer-zu-Schlochtern, 1988. "An International Sectoral Data Base for Thirteen OECD Countries," OECD Economics Department Working Papers 57, OECD Publishing.
  14. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December.
  15. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
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