Regional disparities in Mexico and the spatially cumulative effects of national development and economic cycles, 1940–2013

Abstract

Mexico's regional disparities and national economic performance in the 1940-2013 period is measured to test the question of whether regional imbalances expand or contract with the national economy's growth or decline, and also the question of disparities increasing or decreasing depending on the country's stage of development. Given the recurring waves of recession and stagnation in Mexico in recent decades, determining the cyclicality of disparities is of particular interest for regional policy-making. In the long run, regional inequalities exhibit a U-shape. Results also indicate that while the decrease in disparities during the most severe economic downturns during the liberalized period is striking, there is no strong statistical support for the pro-cyclical evolution of regional inequalities.

Economic and Spatial Restructuring in the Aras Economic Zone: The Impact of Cross-Border Cooperation

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“…Regional authorities are increasingly arguing that giant events benefit the local community in order to justify costly megaprojects [39]. Regional economic policy is significantly impacted by regional disparities as well as their short-and long-term changes [32].…”

“…Policies and strategic planning are typically prioritized over project-level studies, resulting in conflicts between various international and regional developmental policymakers [42]. Top-down strategies will deem bottom-up initiatives ineffective if they do not consider local capabilities and needs [32].…”

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“…They also confirm the existence of convergence clubs. Trejo Nieto (2021) examines whether regional disequilibrium during 1940–2013 relates to phases of the business cycle, but she finds no evidence to support procyclical behavior.…”

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