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Local poverty reduction in Chile and Mexico: The role of food manufacturing growth

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  • Isidro Soloaga

    (Department of Economics, Universidad Iberoamericana, Mexico City. Mexico)

  • Chiara Cazzuffi
  • Mariana Pereira

Abstract

This paper analyses the relationship between local poverty and food manufacture growth in Chile and Mexico using propensity score matching, differences in differences and spatial econometrics methods. We focus on food manufacture as a sector with a number of characteristics that make it potentially pro-poor, and whose incentives for spatial distribution may either strengthen or dampen its poverty reduction potential. The overall results indicate that i) geographically, food manufacture locates in relatively poor areas, but not in the poorest; ii) food manufacture tends to locate in municipalities with more availability of labor and raw materials and with better infrastructure; iii) controlling for other factors, food manufacture growth contributes to local poverty reduction both in terms of magnitude and speed.

Suggested Citation

  • Isidro Soloaga & Chiara Cazzuffi & Mariana Pereira, 2014. "Local poverty reduction in Chile and Mexico: The role of food manufacturing growth," Working Papers 0514, Universidad Iberoamericana, Department of Economics.
  • Handle: RePEc:uic:wpaper:0514
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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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