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Convergence with Stagnation: Mexico's Growth at the Municipal level 1990-2010

Author

Listed:
  • Maria E. Davalos

    (World Bank)

  • Gerardo Esquivel

    (Colmex)

  • Luis Felipe López-Calva

    (World Bank)

  • Carlos Rodríguez-Castelán

    (World Bank)

Abstract

Using municipality-level income data this paper tests for income convergence across municipalities in Mexico from 1990 to 2010. With a unique dataset obtained using the small-area estimation method of poverty mapping, results show that the income of poorer municipalities has grown faster than that of richer municipalities (beta-convergence) in the period under study, particularly from 2000 to 2005. Even with this pattern of beta-convergence across the period, regional disparities (sigma-convergence) only started to fall in the 2000s, after a sharp increase from 1990 to 2000. The convergence process observed in Mexico, however, seems to stem from a combination of positive and relatively higher income growth for those at the very bottom of the income distribution of municipalities and negative growth for those at the top. For the vast majority of municipalities the growth rate of income has been virtually stagnant throughout the period.

Suggested Citation

  • Maria E. Davalos & Gerardo Esquivel & Luis Felipe López-Calva & Carlos Rodríguez-Castelán, 2015. "Convergence with Stagnation: Mexico's Growth at the Municipal level 1990-2010," Working Paper Series Sobre México 2015001, Sobre México. Temas en economía.
  • Handle: RePEc:smx:wpaper:2015001
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    File URL: https://sobremexico.ibero.mx/docs/wp/WP_2015_001.pdf
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    More about this item

    JEL classification:

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