IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa06p344.html
   My bibliography  Save this paper

Institutions and Regional Economic Growth: An Assessment of Mexican Regional Strategies 1970-2000

Author

Listed:
  • Maria Luisa Decuir-Viruez

Abstract

Different factors have been included in order to explain the causes of growth and the disparities observed in the last century. This paper examines the role of institutional factors in the growth rates observed among the 32 states in Mexico in the period 1970-2000. The institutional elements considered are the “strategies†of local governments, in order to assess if the active strategies (those that are participative, open to global economies and less dependent upon central authorities) have better results in terms of growth than the passive type (those that are dependent on central authorities and have restricted external links). Following on from the documents presented at the ERSA Annual Conferences of 2003/4/5, this paper presents the final assessment of the relationship between institutional elements and growth. This includes identification and measurement of the institutional elements (strategies) through Principal Components Analysis (PCA); and its evaluation with growth using Ordinary Least Square Regressions (OLS). The PCA results identified components related to hard and soft institutional elements (strategies and social networks). Meanwhile, the OLS results suggest that institutions matter; in the case of Mexico, the strategies taken by regional governments in the period 1970-2000 have had some influence in their paths of growth and levels of investment. Furthermore, after 1985 there is evidence that the active strategies (which have substituted the national regional policy) are related to a positive performance, in contrast to the passive type.

Suggested Citation

  • Maria Luisa Decuir-Viruez, 2006. "Institutions and Regional Economic Growth: An Assessment of Mexican Regional Strategies 1970-2000," ERSA conference papers ersa06p344, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa06p344
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa06/papers/344.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    2. Leamer, Edward E, 1983. "Let's Take the Con Out of Econometrics," American Economic Review, American Economic Association, vol. 73(1), pages 31-43, March.
    3. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 139-155.
    4. Xavier Sala-i-Martin, 2002. "15 Years of New Growth Economics : What Have we Learnt?," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(2), pages 5-15, August.
    5. Luisa Decuir-Viruez, 2003. "Institutional Factors in the Economic growth of Mexico," ERSA conference papers ersa03p264, European Regional Science Association.
    6. Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, number 9780198233831.
    7. Kormendi, Roger C. & Meguire, Philip G., 1985. "Macroeconomic determinants of growth: Cross-country evidence," Journal of Monetary Economics, Elsevier, vol. 16(2), pages 141-163, September.
    8. William J. Coffey & Mario Polèse, 1984. "The Concept Of Local Development: A Stages Model Of Endogenous Regional Growth," Papers in Regional Science, Wiley Blackwell, vol. 55(1), pages 1-12, January.
    Full references (including those not matched with items on IDEAS)

    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. Helje Kaldaru & Eve Parts, 2005. "The Effect Of Macro-Level Social Capital On Sustainable Economic Development," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 42, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Krishna Paudel & Mark Schafer, 2009. "The Environmental Kuznets Curve Under a New Framework: The Role of Social Capital in Water Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 265-278, February.
    3. Helje Kaldaru & Eve Parts, 2008. "Social and institutional factors of economic development: evidence from Europe," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 8(1), pages 29-51, October.
    4. Tebaldi, Edinaldo & Elmslie, Bruce, 2008. "Do Institutions Impact Innovation?," MPRA Paper 8757, University Library of Munich, Germany.
    5. Edinaldo Tebaldi & Bruce Elmslie, 2008. "Institutions, Innovation And Economic Growth," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 33(2), pages 27-53, December.
    6. Jing Xing, 2011. "Does tax structure affect economic growth? Empirical evidence from OECD countries," Working Papers 1120, Oxford University Centre for Business Taxation.
    7. Xindong Xue & W. Robert Reed & Robbie C.M. van Aert, 2022. "Social Capital and Economic Growth: A Meta-Analysis," Working Papers in Economics 22/20, University of Canterbury, Department of Economics and Finance.
    8. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
    9. Bagella, Michele & Becchetti, Leonardo & Hasan, Iftekhar, 2004. "The anticipated and concurring effects of the EMU: exchange rate volatility, institutions and growth," Journal of International Money and Finance, Elsevier, vol. 23(7-8), pages 1053-1080.
    10. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2008. "Empirics of Growth and Development," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 3, Edward Elgar Publishing.
    11. Carmen Fernandez & Eduardo Ley & Mark F. J. Steel, 2001. "Model uncertainty in cross-country growth regressions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(5), pages 563-576.
    12. Roberto Leon-Gonzalez & Daniel Montolio, 2004. "Growth, convergence and public investment. A Bayesian model averaging approach," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1925-1936.
    13. Mary Oluwatoyin AGBOOLA & Mehmet BALCILAR, 2014. "Can food availability influence economic growth - the case of African countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(5), pages 232-245.
    14. Sabatini, Fabio, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Knowledge, Technology, Human Capital Working Papers 12097, Fondazione Eni Enrico Mattei (FEEM).
    15. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September.
    16. Grogan, Louise & Moers, Luc, 2001. "Growth empirics with institutional measures for transition countries," Economic Systems, Elsevier, vol. 25(4), pages 323-344, December.
    17. Serra, Teresa & Poli, Elena, 2015. "Shadow prices of social capital in rural India, a nonparametric approach," European Journal of Operational Research, Elsevier, vol. 240(3), pages 892-903.
    18. P. Dorian Owen & R. Quentin Grafton & Tom Kompas, 2004. "Productivity, Factor Accumulation and Social Networks: Theory and Evidence," Econometric Society 2004 Australasian Meetings 224, Econometric Society.
    19. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 139-155.
    20. Lízia Figueiredo, 2011. "Social capital literature and Durlauf´s criticism," Textos para Discussão Cedeplar-UFMG td430, Cedeplar, Universidade Federal de Minas Gerais.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:wiw:wiwrsa:ersa06p344. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.