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Is the impact of public investment neutral across the regional income distribution? Evidence from Mexico

Author

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  • Joan Costa Font
  • Eduardo Rodriguez Oreggia

    (Universitat de Barcelona)

Abstract

This paper investigates the contribution of public investment to the reduction of regional inequalities, with a specific application to Mexico. We use quantile regressions to examine the impact of public investment on regional disparities according to the position of each region in the conditional distribution of regional income. Results confirm the hypothesis that regional inequalities can indeed be attributed to the regional distribution of public investment, where the observed pattern shows that public investment mainly helped to reduce regional inequalities between the richest regions.

Suggested Citation

  • Joan Costa Font & Eduardo Rodriguez Oreggia, 2004. "Is the impact of public investment neutral across the regional income distribution? Evidence from Mexico," Working Papers in Economics 113, Universitat de Barcelona. Espai de Recerca en Economia.
  • Handle: RePEc:bar:bedcje:2004113
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    References listed on IDEAS

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    Cited by:

    1. Faguet, Jean-Paul & Shami, Mahvish, 2008. "Fiscal policy and spatial inequality in Latin America and beyond," LSE Research Online Documents on Economics 27162, London School of Economics and Political Science, LSE Library.
    2. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    3. Duran-Fernandez, Roberto & Santos, Georgina, 2014. "Road infrastructure spillovers on the manufacturing sector in Mexico," Research in Transportation Economics, Elsevier, vol. 46(C), pages 17-29.

    More about this item

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • 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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