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A Stochastic Walk Down Mexico’S Mesoamerican Frontier, 1990-2011

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  • Gregory BROCK
  • Constantin OGLOBLIN

Abstract

Local economic growth 1990-2011 along Mexico’s southern border is analyzed using a stochastic production function with subject-specific fixed effects and the convergence literature. An underlying Translog technology fits the data well with excess physical capital and labor evident. Local border economies converged following a neoclassical growth paradigm though growth in total factor productivity was negative due to diseconomies of scale. Mean technical efficiency is quite low (31%) with relatively lower efficiency on the Mexican side of the frontier. A greater focus on the economic development of municipios located directly on either side of the border is suggested along with investments designed to improve technical change.

Suggested Citation

  • Gregory BROCK & Constantin OGLOBLIN, 2015. "A Stochastic Walk Down Mexico’S Mesoamerican Frontier, 1990-2011," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 99-114.
    • Handle: RePEc:eaa:aeinde:v:15:y:2015:i:2_8
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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