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Spatial diffusion of economic growth and externalities in Mexico

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  • Valdez , Rolando I.

    (CONACYT – Universidad Autónoma Chapingo)

Abstract

Economic growth and externalities are rooted in spatial dynamics, however, their spread over space is not unlimited. In this document it is estimated the strength spatial externalities from capital on output and the spatial spillover of the economic growth for Mexican municipalities at different distances. The estimation is carried out implementing a Spatial Durbin Model with distance-based spatial weight matrices in a panel data structure from 1988 to 2013. The results show evidence of weak spatial externalities from capital on output at short distances, say 20 or 60 km. Additionally, it is found that the diffusion of economic growth is directly related to distance, moreover, there is evidence in favor about the convergence hypotheses, finding out that distance between stationary states is insufficient to explain differences among municipalities’ growth rates, but geographical distance matters as well.

Suggested Citation

  • Valdez , Rolando I., 2019. "Spatial diffusion of economic growth and externalities in Mexico," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 45, pages 139-160.
    • Handle: RePEc:ris:invreg:0417
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    Cited by:

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    2. Domingo Rodríguez Benavides & Miguel Ángel Mendoza González & Jose Antonio Climent Hernández, 2022. "La hipótesis de convergencia en México: un enfoque de sigma-convergencia débil," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(2), pages 1-21, Abril - J.
    3. Vicente German‐Soto & Konstantin Gluschenko, 2023. "Long‐term regional convergence in Mexico: A new look," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 963-991, May.
    4. Torres Torres, Felipe & Rojas Martínez, Agustín, 2022. "La seguridad alimentaria en la encrucijada de las desigualdades regionales de México," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 53, pages 91-115.
    5. Félix Modrego & Andrea Canales & Héctor Bahamonde, 2020. "Employment effects of COVID‐19 across Chilean regions: An application of the translog cost function," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(6), pages 1151-1167, December.
    6. Rodríguez Benavides, Domingo & Mendoza González, Miguel Ángel & Muller Durán, Nancy Ivonne, 2022. "Convergencia regional sigma débil en México: 1970-2019," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 54, pages 29-49.

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    More about this item

    Keywords

    Economic growth; Externalities; Spatial Convergence.;
    All these keywords.

    JEL classification:

    • 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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