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This paper studies the spatial dimension of growth in Mexico over the last three decades. The literature regional economic growth has shown a decrease regional dispersion from 1970 to 1985 and as sharp increase afterwards coinciding with the trade liberalization of the Mexican economy. Using spatial econometric tools we analyze how the process of convergence/divergence has mapped spatially and whether it makes sense to talk about spatial regions in Mexico. Although the rich North/ poor South dichotomy has, overall, dominated this phenomenon, interesting patterns emerge. Namely that the distribution of growth after Mexico's post liberalization seems to be much less associated to distance to the US than initially expected.
Survey data collection for this project was financed by the Inter-American Development Bank. Administrative data was obtained from the Government of Ecuador. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research, the Inter-American Development Bank, its Board of Directors, or the countries they represent. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w22670.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
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