PRODUCTION, EMPLOYMENT AND PUBLIC INVESTMENT IN NORTHERN BORDER OF MEXICO, PRODUCCION, EMPLEO E INVERSION PUBLICA EN LA FRONTERA NORTE DE MEXICO

Isaac Sánchez-Juárez and Rosa Maria Garcia Almada

Revista Internacional Administracion & Finanzas, 2014, vol. 7, issue 7, 111-126

Abstract: This paper focuses on the behavior of output per person and employment in Mexico's northern border. We compare growth of the region with respect to national averages, this for the purpose of diagnosis and subsequent design of public policy. The basic assumption is that public investment has a favorable impact on the growth of output and employment. We used a panel data model that evaluates the specified variables and includes foreign direct investment, gross formation of fixed capital formation and education. The results do not confirm our hypothesis. We found a negative relationship between public investment, production and employment, which can be explained by the effects of crowding-out that government spending has on private investment.

Keywords: Mexico; Northern Border; Production; Employment; Public Investment (search for similar items in EconPapers)
JEL-codes: H54 O40 R11 (search for similar items in EconPapers)
Date: 2014
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