Spatial Interaction Regional Model for the Mexican Economy (SIRMME): A Special Case for Mexico City Metropolitan Area

Abstract

This paper analyzes empirically a macro model and a regional model to explain Mexico and Mexico City economies respectively. Typically, regional economic modeling considers either a top-down or bottom-up approach to model regional difference in economic growth. This paper shows results that explain regional difference in Mexico from the bottom-up through a special case that focuses on the spatial interaction between Mexico City-the main economic engine of Mexico-and the rest of the country during the period 2000-2010. Our results indicate that variables associated with human capital, internal migration, "creative class", micro-firms and spatial interaction among micro-regions were conditioning the differential growth between Mexico City and the whole country during the period 2000-2010. Likewise, we present econometric results of a typical macro model that explains economic growth in Mexico by different income effects on components of aggregate demand during the period 1993-2010. The purpose of both exercises is to motivate future research for the Mexican case to link macro components (such as export driven forces, Mexico´s dependency to the USA´s business cycle, loss of government spending, etc.) with their local counterparts such as agglomeration economies, human and creative capital stock, regional spillovers, natural resources, dynamic population, etc. to explain regional differential growth.

Spatial modeling of human potential in the Republic of Bashkortostan

“…Для моделирования экономического и инновационного развития во многих странах эффективно применяются пространственные эконометрические модели [10,11]. Выделив в Мексике столицу Мехико как крупный центр и остальную территорию как периферию, проведено эконометрическое моделирование с учетом человеческого капитала, внутренней миграции, доли «креативного класса» и доли малых предприятий, а также пространственной автокорреляции на микроуровне [10]. На основе панельных пространственных моделей с фиксированными эффектами (как SEM, так и SLM), были исследованы различия в степени регионального экономического развития 12 западных провинций Китая [11].…”

Analysis Of Spatial Distribution Of Human Development Index In Republic Of Bashkortostan

“…Spatial econometric models are efficiently used to simulate economic and innovative development in many countries (Mendoza-González, Valdivia-López, & Quintana-Romero, 2016;Zhang, Liu, Wang, & Li, 2017;Li, & Miao, 2017). By selecting Mexico City as a large center in Mexico and the remaining territory as periphery, an econometric simulation was carried out with consideration for human capital, internal migration, share of the "creative class" and small enterprise, as well as spatial autocorrelation at the micro-level.…”