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Corn Market Integration in Porfirian Mexico

This paper deals with a polemic and relevant aspect of the economic history of Porfirian Mexico: the integration of agricultural domestic markets. Since corn was the staple product of the commercial agricultural sector and also the main subsistence crop, it is the protagonist of this story. Panel techniques, similar to those used by Barro and Sala-i-Martín (1992), are applied to a price convergence model. Our analysis reveals that Mexico was not an exception in the international panorama of market integration in late 19th and early 20th centuries [O’Rourke and Williamson (1999)]. Although still incomplete on the eve of the Mexican Revolution, corn market integration substantially increased during the Porfiriato and ended up further than estimated by Kuntz (1995a, 1995b, 1996, 1999a and 1999b). Railroads were not only indispensable to the economic growth of Mexico, as Coatsworth (1984) showed, in particular to the export sector, but they also played a positive and significant role in the process of corn market integration.

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File URL: http://eprints.ucm.es/7716/1/0402.pdf
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Paper provided by Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico in its series Documentos de Trabajo del ICAE with number 0402.

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Length: 16 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:ucm:doicae:0402
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  1. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  2. Mette Ejrnæs & Karl Gunnar Persson, 1998. "Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price," Discussion Papers 98-19, University of Copenhagen. Department of Economics.
  3. R. Findlay & K. H. O'Rourke, 2001. "Commodity market integration, 1500-2000," CEG Working Papers 20019, Trinity College Dublin, Department of Economics.
  4. Robert J. Barro, 1995. "Inflation and Economic Growth," NBER Working Papers 5326, National Bureau of Economic Research, Inc.
  5. Esquivel, Gerardo, 1999. "Convergencia regional en México, 1940-1995," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(264), pages 725-761, : octubre.
  6. Coatsworth, John H., 1979. "Indispensable Railroads in a Backward Economy: The Case of Mexico," The Journal of Economic History, Cambridge University Press, vol. 39(04), pages 939-960, December.
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  1. Historical Economic Geography

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