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Measuring economic performance atmunicipal level from outer space: the case of Mexico

Author

Listed:
  • Mauricio Ramirez Grajeda

    (Universidad de Guadalajara. Mexico)

  • Andres Jerson Millan Lopez

    (Instituto Tecnologico y de Estudios Superiores de Monterrey. Mexico)

Abstract

Objective: the aim of this paper is to assess whether economic performace at municipal level scatters across space and time within Mexican states. Methodology: we follow a two-step econometric strategy. The first step is to instrument for both GDP and GDP growth rates at municipal level by following Henderson et al.(2012)’s methodology. The second step is to regress a dynamic spatial econometric model by following Elhorst (2010)’s model specification and estimation strategy. Limitations: we consider 1) Distortions in luminosity data 2) Our results are based upon municipalities within state. We do not test spatial implications among municipalities that belong to different states. Originality: we partially follow Millan Lopez and Gonzalez Olivares (2024) research line notwithstanding, we go further to analyze spatial interactions at municipal level. Conclusions: our main findings are that economic performance of municipalities significantly depend upon their neighbor’s contemporaneous and lagged economic perfomance. Furthermore, this paper provides a specific estimate to approximate both GDP and GDP growth rates where there is lack of statistical sources; for example, metropolitan or coastal areas.

Suggested Citation

  • Mauricio Ramirez Grajeda & Andres Jerson Millan Lopez, 2025. "Measuring economic performance atmunicipal level from outer space: the case of Mexico," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 25(1), pages 165-183, January-J.
    • Handle: RePEc:qua:journl:v:22:y:2025:i:1:p:165-183
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    More about this item

    Keywords

    spatial econometrics and economic performance and economic geography.;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Y - Miscellaneous Categories
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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