Regional Economic Growth in Mexico : Recent Evolution and the Role of Governance

There has been substantial research in recent years examining the regional evolution of economic growth across states in Mexico -- with a particular focus on the post North American Free Trade Agreement period. There is also a vast literature using cross-country regressions to examine institutional determinants of economic growth, including government transparency, or "corruption," as a key institutional variable. This paper uses more recently available data for Mexican states to both update the general state convergence/divergence literature, and incorporate into the analysis more recently developed state level indicators of institutional factors related to government transparency. The authors do not find a systematic relationship between measures of government transparency and gross domestic product per capita growth in Mexico during 2001-2005; however, they do find that corruption is negatively associated with the level of state gross domestic product per capita. The contrasting results may imply that more years of data are necessary to be able to establish statistically significant relationships between state growth rates and measures of corruption.

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Bibliographic Details
Main Authors: Weiss, Eli, Rosenblatt, David
Language:English
Published: 2010-07-01
Subjects:ACCOUNTING, AGGREGATE LEVEL, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL SECTOR, AGRICULTURE, ALLOCATION, ANNUAL GROWTH, ANNUAL GROWTH RATE, AVERAGE GROWTH, AVERAGE GROWTH RATE, AVERAGE INCOME, AVERAGE INCOME GROWTH, BIDDING, BRIBE, BRIBERY, BRIBES, BUREAUCRACY, BUREAUCRATIC CORRUPTION, CAPITAL INVESTMENT, CITIZENS, CIVIL SERVANTS, COMPARATIVE ADVANTAGE, COMPARATIVE ECONOMICS, COMPARATIVE POLITICS, COMPLAINTS, CONSUMERS, CORRUPT, CORRUPT COUNTRIES, CORRUPT OFFICIALS, CORRUPTION, CORRUPTION LEVELS, CORRUPTION PERCEPTION, CORRUPTION PERCEPTION INDEX, CORRUPTION VARIABLE, COUNTRY DATA, COUNTRY REGRESSIONS, CPI, CRIME, CRISES, CROSS COUNTRY, DEMOCRACY, DESCRIPTIVE STATISTICS, DEVELOPING COUNTRIES, DEVELOPING WORLD, DEVELOPMENT COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT INDICATORS, DIRECT INVESTMENT, DISCRETION, DOMESTIC MARKETS, ECONOMIC CRISES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC PERFORMANCE, ECONOMIC REFORM, ECONOMICS LETTERS, ECONOMICS LITERATURE, ECONOMIES OF SCALE, EMPIRICAL ESTIMATES, EMPIRICAL LITERATURE, EMPIRICAL STUDIES, EXPECTED RETURNS, EXPORTS, EXTERNAL SHOCKS, FEDERAL GOVERNMENT, FIGHT AGAINST CORRUPTION, FREE TRADE, GDP, GDP PER CAPITA, GLOBAL ECONOMY, GOOD GOVERNANCE, GOVERNANCE INDICATOR, GOVERNMENT TRANSPARENCY, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT PER CAPITA, GROWTH MODEL, GROWTH RATE, GROWTH RATES, GROWTH REGRESSION, GROWTH REGRESSIONS, HUMAN CAPITAL, INCOME, INCOME DISTRIBUTION, INCOME GROWTH, INCOME INEQUALITY, INDEPENDENT VARIABLE, INDEPENDENT VARIABLES, INDUSTRIALIZATION, INEQUALITY, INSTITUTIONAL CHANGE, INSTITUTIONAL ENVIRONMENT, INSTITUTIONAL MEASURES, INTERNATIONAL LEVEL, JUDICIAL SYSTEM, JUDICIAL SYSTEMS, LABOR MARKET, MARGINAL TAX, MARGINAL TAX RATE, MARKET ECONOMIES, MONETARY ECONOMICS, MULTINATIONAL, NEGATIVE EFFECT, NEGATIVE IMPACT, OFFENSE, OUTPUT PER CAPITA, PER CAPITA GROWTH, PER CAPITA INCOME, PERCEPTION OF CORRUPTION, POLICE, POLICY CHANGES, POLICY RESEARCH, POLITICAL CORRUPTION, POLITICAL ECONOMY, PRIVATE GAINS, PROMOTING GROWTH, PROPERTY RIGHTS, PUBLIC FINANCES, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC POLICY, PUBLIC SERVICE, RELATIVE INCOME, RELATIVE WAGE, REVERSE CAUSALITY, SIGNIFICANT CORRELATION, SKILLED WORKERS, SOCIAL COST, SOCIAL SPENDING, SPATIAL ECONOMICS, STANDARD DEVIATION, TAX SYSTEM, TAXATION, TECHNOLOGICAL CHANGE, THIN MARKETS, TRADE LIBERALIZATION, TRADE POLICY, TRADE REFORMS, TRANSPARENCY, UNOFFICIAL ECONOMY, URBANIZATION, VETO, VETO POWER, WAGES,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100721085012
https://hdl.handle.net/10986/3853
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Summary:There has been substantial research in recent years examining the regional evolution of economic growth across states in Mexico -- with a particular focus on the post North American Free Trade Agreement period. There is also a vast literature using cross-country regressions to examine institutional determinants of economic growth, including government transparency, or "corruption," as a key institutional variable. This paper uses more recently available data for Mexican states to both update the general state convergence/divergence literature, and incorporate into the analysis more recently developed state level indicators of institutional factors related to government transparency. The authors do not find a systematic relationship between measures of government transparency and gross domestic product per capita growth in Mexico during 2001-2005; however, they do find that corruption is negatively associated with the level of state gross domestic product per capita. The contrasting results may imply that more years of data are necessary to be able to establish statistically significant relationships between state growth rates and measures of corruption.