IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/dp2003-60.html
   My bibliography  Save this paper

Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico

Author

Listed:
  • Andres Rodriguez-Pose
  • Javier Sánchez-Reaza

Abstract

The paper analyses the impact trade liberalization and economic integration have had on regional growth and regional disparities in Mexico over the last two decades. It is highlighted that the passage from an import substitution system to membership of the General Agreement on Tariffs and Trade (GATT) first, and to economic integration in the North American Free Trade Agreement (NAFTA) later, has been associated with greater concentration of economic activity and territorial polarization. The analysis also shows that these changes herald a period of transition between two growth models.

Suggested Citation

  • Andres Rodriguez-Pose & Javier Sánchez-Reaza, 2003. "Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico," WIDER Working Paper Series DP2003-60, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-60
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-060.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Markusen, James R. & Melvin, James R. & Maskus, Keith E. & Kaempfer, William, 1995. "International trade: theory and evidence," MPRA Paper 21989, University Library of Munich, Germany.
    2. Dennis Conway & Jeffrey H. Cohen, 1998. "Consequences of Migration and Remittances for Mexican Transnational Communities," Economic Geography, Taylor & Francis Journals, vol. 74(1), pages 26-44, January.
    3. Hanson, Gordon H., 1998. "Regional adjustment to trade liberalization," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 419-444, July.
    4. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
    5. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Economic Convergence and Economic Policies," NBER Working Papers 5039, National Bureau of Economic Research, Inc.
    6. Mr. V. Hugo Juan-Ramon & Luis Rivera-Batiz, 1996. "Regional Growth in Mexico: 1970-1993," IMF Working Papers 1996/092, International Monetary Fund.
    7. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    8. Javier Sánchez‐Reaza & Andrés Rodríguez‐Pose, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Wiley Blackwell, vol. 33(1), pages 72-90.
    9. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    10. repec:idb:brikps:22958 is not listed on IDEAS
    11. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 1-6, Summer.
    12. Krugman, Paul R, 1993. "The Narrow and Broad Arguments for Free Trade," American Economic Review, American Economic Association, vol. 83(2), pages 362-366, May.
    13. José Ernesto López Córdova & Mauricio Mesquita Moreira, 2003. "Regional Integration and Productivity: The Experiences of Brazil and Mexico," IDB Publications (Working Papers) 23438, Inter-American Development Bank.
    14. Grossman, Gene M. & Helpman, Elhanan, 1991. "Trade, knowledge spillovers, and growth," European Economic Review, Elsevier, vol. 35(2-3), pages 517-526, April.
    15. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, vol. 40(3-5), pages 941-949, April.
    16. López Córdova, José Ernesto & Mesquita Moreira, Mauricio, 2003. "Regional Integration and Productivity: The Experiences of Brazil and Mexico," IDB Publications (Working Papers) 2790, Inter-American Development Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zeng, Dao-Zhi & Zhao, Laixun, 2010. "Globalization, interregional and international inequalities," Journal of Urban Economics, Elsevier, vol. 67(3), pages 352-361, May.
    2. Baylis, Kathy & Garduño-Rivera, Rafael & Piras, Gianfranco, 2012. "The distributional effects of NAFTA in Mexico: Evidence from a panel of municipalities," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 286-302.
    3. Escobar Gamboa, Octavio Romano, 2009. "IDE entrants, exportations et productivité manufacturière : les différentes performances des régions mexicaines," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/3850 edited by Guillochon, Bernard.
    4. Inmaculada C. Alvarez Ayuso & Osvaldo U. Becerril Torres & Laura E. del Moral Barrera, 2011. "The effect of infrastructures on total factor productivity and its determinants: a study on Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 26(1), pages 97-122.
    5. Georg Hirte & Christian Lessmann, 2014. "Trade, Integration, and Interregional Inequality," CESifo Working Paper Series 4799, CESifo.
    6. Kanbur, Ravi & Venables, Anthony J., 2005. "SPATIAL INEQUALITY AND DEVELOPMENT Overview of UNU-WIDER Project," Working Papers 127127, Cornell University, Department of Applied Economics and Management.
    7. Georg Hirte & Christian Lessmann, 2014. "Trade and Interregional Inequality," ERSA conference papers ersa14p304, European Regional Science Association.
    8. Marius Brülhart, 2011. "The spatial effects of trade openness: a survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(1), pages 59-83, April.
    9. Guillermo E. Perry & Omar S. Arias & J. Humberto López & William F. Maloney & Luis Servén, 2006. "Poverty Reduction and Growth : Virtuous and Vicious Circles," World Bank Publications - Books, The World Bank Group, number 6997, December.
    10. Zhao Chen & Yu Jin & Ming Lu, 2005. "Economic Opening and Industrial agglomeration in China," Industrial Organization 0511012, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mauricio Ramírez Grajeda & Ian M. Sheldon, 2015. "Trade Openness and City Interaction," World Scientific Book Chapters, in: Amitrajeet A Batabyal & Peter Nijkamp (ed.), THE REGION AND TRADE New Analytical Directions, chapter 10, pages 267-318, World Scientific Publishing Co. Pte. Ltd..
    2. Georg Hirte & Christian Lessmann, 2014. "Trade, Integration, and Interregional Inequality," CESifo Working Paper Series 4799, CESifo.
    3. Georg Hirte & Christian Lessmann, 2014. "Trade and Interregional Inequality," ERSA conference papers ersa14p304, European Regional Science Association.
    4. Hanson, Gordon H, 1998. "North American Economic Integration and Industry Location," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 30-44, Summer.
    5. Ezcurra, Roberto & Rodríguez-Pose, Andrés, 2013. "Does Economic Globalization affect Regional Inequality? A Cross-country Analysis," World Development, Elsevier, vol. 52(C), pages 92-103.
    6. Natalya Petrovna Ryzhova, 2012. "Spatial Effects of International Economic Integration (in the case of Russian Regions)," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 28-48.
    7. Harri Ramcharran, 2017. "Foreign direct investment in the Dominican Republic: consequences and recommendations for sustainable growth," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 41(3), pages 610-629, July.
    8. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration effects in border regions - a survey of economic theory and empirical studies," ERSA conference papers ersa02p066, European Regional Science Association.
    9. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
    10. Jacob A. Jordaan, 2012. "Agglomeration and the location choice of foreign direct investment: new evidence from manufacturing FDI in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(1), pages 61-97.
    11. Zhao Chen & Yu Jin & Ming Lu, 2005. "Economic Opening and Industrial agglomeration in China," Industrial Organization 0511012, University Library of Munich, Germany.
    12. Vitor Joao Pereira Domingues Martinho, 2011. "Agglomeration and Interregional Mobility of Labor in Portugal," Papers 1110.5534, arXiv.org.
    13. Simonetta Longhi & Peter Nijkamp & Iulia Traistaru, 2003. "Determinants of Manufacturing Location in EU Accession Countries," ERSA conference papers ersa03p310, European Regional Science Association.
    14. Julio Martinez-Galarraga & Daniel A. Tirado & Rafael González-Val, 2015. "Market potential and regional economic growth in Spain (1860–1930)," European Review of Economic History, European Historical Economics Society, vol. 19(4), pages 335-358.
    15. Sabyasachi Tripathi, 2013. "Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 176-200, November.
    16. Maarten Bosker & Waldo Krugell, 2008. "Regional Income Evolution In South Africa After Apartheid," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 493-523, August.
    17. Toshihiro Atsumi, 2009. "Silk, Regional Rivalry, and the Impact of the Port Openings in Nineteenth Century Japan," Discussion Papers 09/15, University of Nottingham, GEP.
    18. Nuria Gallego & José L. Zofío, 2018. "Trade Openness, Transport Networks and the Spatial Location of Economic Activity," Networks and Spatial Economics, Springer, vol. 18(1), pages 205-236, March.
    19. A. Kerem Co?ar & Pablo D. Fajgelbaum, 2016. "Internal Geography, International Trade, and Regional Specialization," American Economic Journal: Microeconomics, American Economic Association, vol. 8(1), pages 24-56, February.
    20. Gómez-Zaldívar, Manuel & Mosqueda, Marco T. & Duran, Jazmin A., 2017. "Localization of manufacturing industries and specialization in Mexican states: 1993–2013," MPRA Paper 76510, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:dp2003-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.