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Regional convergence, road infrastructure, and industrial diversity in Mexico

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  • Duran-Fernandez, Roberto
  • Santos, Georgina

Abstract

This paper presents a convergence analysis of productivity growth in the manufacturing sector in Mexico using regional data from the National Economic Census 1999 and 2004. The absolute convergence analysis indicates that regional productivity growth follows a slow convergence trajectory. However, a conditional convergence analysis indicates that current productivity gaps can be directly attributed to divergences in the industrial profile of the regional economy as well as to differences in infrastructure endowments. The results of the paper suggest that the productivity gaps which originated from the liberalisation reforms of the 1980s and 1990s will be exhausted in 25 years approximately. The innovation of this paper is the extension of a convergence analysis to the industrial sector. The use of regional data improves the details of the analysis and allows the identification of growth patterns that had not been previously identified. Finally, it applies innovative metrics to model the industrial profile of a region and the value of transport infrastructure.

Suggested Citation

  • Duran-Fernandez, Roberto & Santos, Georgina, 2014. "Regional convergence, road infrastructure, and industrial diversity in Mexico," Research in Transportation Economics, Elsevier, vol. 46(C), pages 103-110.
  • Handle: RePEc:eee:retrec:v:46:y:2014:i:c:p:103-110
    DOI: 10.1016/j.retrec.2014.09.007
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    References listed on IDEAS

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    1. Esquivel, Gerardo, 1999. "Convergencia regional en México, 1940-1995," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(264), pages 725-761, : octubre.
    2. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    3. Duran-Fernandez, Roberto & Santos, Georgina, 2014. "A GIS model of the National Road Network in Mexico," Research in Transportation Economics, Elsevier, vol. 46(C), pages 36-54.
    4. Rodrigo García Verdú, 2005. "Income, Mortality, and Literacy Distribution Dynamics Across States in Mexico: 1940-2000," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 165-192.
    5. Javier Sánchez-Reaza, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Wiley Blackwell, vol. 33(1), pages 72-90.
    6. Duran-Fernandez, Roberto & Santos, Georgina, 2014. "A regional model of road accessibility in Mexico: Accessibility surfaces and robustness analysis," Research in Transportation Economics, Elsevier, vol. 46(C), pages 55-69.
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    Cited by:

    1. Duran-Fernandez, Roberto, 2014. "Infrastructure policy in the USA–Mexico border: Evaluation and policy perspectives," Research in Transportation Economics, Elsevier, vol. 46(C), pages 70-102.

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