Spatial Dimensions of Trade Liberalization and Economic Convergence: Mexico 1985-2002
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World Bank, Washington, DC
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This paper studies the spatial dimension of growth in Mexico over the past three decades. The literature on regional economic growth shows a decrease in regional dispersion from 1970 to 1985, and a sharp increase afterward coinciding with the trade liberalization of the Mexican economy. Using spatial econometric, tools the authors analyze how the process of convergence/divergence has mapped spatially and whether it makes sense to talk about spatial regions in Mexico. Although the rich North-poor South dichotomy has dominated this phenomenon, interesting patterns emerge. Namely the distribution of growth after Mexico's post-liberalization seems to be much less associated with distance to the United States than the authors had initially expected.
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ABUNDANCE, AGGREGATE INEQUALITY, AGRICULTURE, AVERAGE INCOME, AVERAGE INCOMES, CONVERGENCE TESTS, DEBT, DEVELOPMENT ECONOMICS, DISECONOMIES, DIVERGENT PATHS, ECONOMETRICS, ECONOMIC ACTIVITY, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC REVIEW, ECONOMICS LITERATURE, EXPORTS, EXTERNALITIES, FREE TRADE, GDP, GDP PER CAPITA, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT PER CAPITA, GROUP INEQUALITY, GROWTH PROCESS, GROWTH RATES, HIGH GROWTH, HIGH INCOME, HUMAN CAPITAL, INCOME, INCOME CONVERGENCE, INCOME DATA, INCOME DISTRIBUTION, INCOME LEVELS, INCOME QUINTILES, INEQUALITY, INTERNATIONAL TRADE, LABOR MARKET, LATIN AMERICAN, LINEAR RELATIONSHIP, NATIONAL INCOME, NATURAL ENDOWMENTS, NATURAL RESOURCES, NEGATIVE GROWTH, 0 HYPOTHESIS, OIL PRODUCTION, PER CAPITA INCOME, PER CAPITA INCOMES, POLICY RESEARCH, POLITICAL ECONOMY, POOR COUNTRIES, POPULATION GROWTH, POPULATION GROWTH RATES, POSITIVE CORRELATION, REGIONAL DIFFERENCES, REGIONAL DUMMIES, REGIONAL INEQUALITY, REGIONAL LEVEL, RELATIVE INCOME, RELATIVE INCOMES, RELATIVE POSITION, SERIES ECONOMETRICS, SOUTH AMERICA, SPATIAL ECONOMICS, STAGNATION, TIME SERIES, TRADE LIBERALIZATION, TRADE REFORMS, WEALTH