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The Ejido System and Economic Growth of the Mexican States

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  • Wallace, Frederick
  • Chapa Cantú, Joana

Abstract

Building on previous work by Chiquiar (2005) we study the impact of the ejido communal property system on economic growth in the Mexican states. The average growth rate of state per capita GDP is negatively related to the share of state land in the communal ejido system during some of the sub-periods examined. The negative relation suggests that the misallocation of resources related to the limited property rights of ejidatarios has been a binding constraint on the growth of the Mexican states at times during the 1970-2012 period. We also examine the conditional convergence or divergence of the Mexican states for 2003-2012 and 2005-2012 and find that definite conclusions cannot be drawn. Whether state GDP per capita converged or diverged depends on whether the estimations start with 2003 or 2005 and, interestingly, on the specific ejido variable included in the model.

Suggested Citation

  • Wallace, Frederick & Chapa Cantú, Joana, 2015. "The Ejido System and Economic Growth of the Mexican States," MPRA Paper 62261, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:62261
    as

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    References listed on IDEAS

    as
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    2. de Janvry, Alain & Gonzalez-Navarro, Marco & Sadoulet, Elisabeth, 2014. "Are land reforms granting complete property rights politically risky? Electoral outcomes of Mexico's certification program," Journal of Development Economics, Elsevier, vol. 110(C), pages 216-225.
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    5. Chiquiar, Daniel, 2005. "Why Mexico's regional income convergence broke down," Journal of Development Economics, Elsevier, vol. 77(1), pages 257-275, June.
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    9. de Janvry, Alain & Gonzalez-Navarro, Marco & Sadoulet, Elisabeth, 2012. "Why are land reforms granting complete property rights politically risky? Electoral outcomes of Mexico's certification program," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt54p345fx, Department of Agricultural & Resource Economics, UC Berkeley.
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    Cited by:

    1. Aleksandr Yakovlevich Rubinstein, 2016. "Theory Of Patronized Goods. Liberal Evolution Of Paternalism," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 4(1), pages 6-29, June.

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    More about this item

    Keywords

    Economic growth; Mexican states; ejido system; property rights;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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