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Trade liberalization and regional income convergence in Mexico: a time-series analysis

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  • Gómez, Manuel
  • Ventosa-Santaulària, Daniel

Abstract

We study the hypothesis of convergence amongst Mexican regions since 1940 with special interest in the post-trade liberalization period. A standard time-series convergence test shows that per capita income levels between the capital and the rest of the regions tend to narrow over time. Using the concept of deterministic and stochastic convergence, we describe the specific characteristics of the growth pattern for each of the regions. We find evidence that supports the hypothesis that trade reforms reversed the convergence process of some regions, especially those less developed. Results further suggest that trade liberalization did not contribute to per capita income convergence between the U.S. and Mexico border regions.

Suggested Citation

  • Gómez, Manuel & Ventosa-Santaulària, Daniel, 2007. "Trade liberalization and regional income convergence in Mexico: a time-series analysis," MPRA Paper 58777, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58777
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    References listed on IDEAS

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    Cited by:

    1. Baafi Antwi, Joseph, 2010. "Ghana's Economic Growth in perspective: A time series approach to Convergence and Growth Determinants," MPRA Paper 23455, University Library of Munich, Germany, revised 12 Jun 2010.

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    More about this item

    Keywords

    Catching-up; Convergence; Deterministic Trend; and Unit Root.;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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