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Institutions and Economic Performance in Mexican States

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  • Sonora, Robert

Abstract

This paper investigates the relationship between institutional quality and economic performance the 32 Mexican states over the period 2003 -- 2010. Using dynamic panel GMM estimation and the Fraser Institutes index of economic freedom, I find that freedom has an ambiguous impact on economic growth and improvements undermines employment. These results are corroborated with dynamic OLS model and panel fixed and random effects models.

Suggested Citation

  • Sonora, Robert, 2014. "Institutions and Economic Performance in Mexican States," MPRA Paper 58368, University Library of Munich, Germany, revised 15 Jun 2014.
    • Handle: RePEc:pra:mprapa:58368
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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