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Public infrastructure and its importance for economic growth: the case of Oaxaca (Mexico)

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  • Luis Enrique Rojas Ramírez
  • Alejandro Molina Vargas

Abstract

The objective of this paper is to estimate the impact of public infrastructure on economic growth in the eight regions of Oaxaca for the period 2003-2013. Given that regional statistics are lacking, the methodology proposed by Gerber (2003) is used to calculate the economic growth of the regions. And to measure the impact of infrastructure on growth, based on Hoechle (2007) a fixed-effects model with standard errors of Driscoll and Kraay (DKSE) is applied. The results indicate that investment in infrastructure has been insufficient and misallocated; however, the social infrastructure shows the greatest impact on growth. Finally, the results suggest that the most dynamic regions require greater investment in economic infrastructure, while the backward regions need social infrastructure.

Suggested Citation

  • Luis Enrique Rojas Ramírez & Alejandro Molina Vargas, 2018. "Public infrastructure and its importance for economic growth: the case of Oaxaca (Mexico)," Revista Ecos de Economía, Universidad EAFIT, vol. 22(46), pages 4-27, June.
    • Handle: RePEc:col:000442:016363
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Panel data; Infrastructure; Regional economic growth.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • 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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