Rich in Resources, Poor in Infrastructure: A Spatial Analysis of Multidimensional Poverty and Water Deprivation in Mexican Municipalities

This study analyzes the territorial factors that are associated poverty in Mexican municipalities, beyond infrastructure access and proximity to urban centers. It argues that limited access to water is a determinant of multidimensional poverty. Using spatial econometric models, the findings show that a 1% increase in water access reduces poverty by 0.41%, accounting for both local impacts and effects in neighboring municipalities. Indirect effects― improvements in water access in neighboring areas― have a greater association on poverty reduction within a municipality than direct effects― improvements within the municipality itself. These findings highlight the importance of incorporating spatial analysis into public policy design to ensure water access in the poor regions.