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Has Trade Liberalization Increased Economic Inequality among the Mexican States? An Analysis from a Spatial Econometric Perspective

Author

Listed:
  • Vicente Germán-Soto

    (Catedrático-investigador, Facultad de Economía, Universidad Autónoma de Coahuila, Unidad Camporredondo, Saltillo, Coah. Mexico.)

  • José Luis Escobedo Sagaz

    (Catedrático-investigador, Facultad de Economía, Universidad Autónoma de Coahuila, Unidad Camporredondo, Saltillo, Coah. Mexico.)

Abstract

What are the empirical effects of trade liberalization? This question is debated nowadays, in both an international and a regional scope. This work analyzes the economic inequality among Mexican states by means of a convergence methodology and spatial econometrics techniques. Results indicate a positive association between spatial autocorrelation and convergence, which has been diminishing during recent years. We also estimate the magnitude and direction of this relationship, and find that the lack of convergence agrees with trade openness in the country. Spatial dependence indexes point out a consistent low income cluster in the South of the country, which is worrying.

Suggested Citation

  • Vicente Germán-Soto & José Luis Escobedo Sagaz, 2011. "Has Trade Liberalization Increased Economic Inequality among the Mexican States? An Analysis from a Spatial Econometric Perspective," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 37-77, January-J.
    • Handle: RePEc:emc:ecomex:v:20:y:2011:i:1:p:37-77
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    File URL: http://www.economiamexicana.cide.edu/num_anteriores/XX-1/02.EM.Liberalizacion_comercial(37-77).pdf
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    Citations

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    Cited by:

    1. Vítor João Pereira Domingues Martinho, 2021. "Impact of Covid‐19 on the convergence of GDP per capita in OECD countries," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(S1), pages 55-72, November.

    More about this item

    Keywords

    trade liberalization; income inequality; spatial econometrics; economic growth; Mexico.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • N96 - Economic History - - Regional and Urban History - - - Latin America; Caribbean
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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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