The real Oaxaca decomposition: convergence within Mexico’s Oaxaca region in the twenty-first century—Do types of crime and religious belief matter?

Gregory Brock ()

Economic Change and Restructuring, 2020, vol. 53, issue 4, No 3, 543-569

Abstract: Abstract The paper empirically examines municipality convergence within Mexico’s southern Oaxaca region. We find municipalities are converging more rapidly than the “iron law” of 2% with up to 8% β convergence. Though homicides from the Drug War have negatively impacted growth, overall crime perhaps through strengthening local institutions has a positive but weak impact. Higher income inequality and Catholic belief are associated with higher per capita GDP growth in Oaxaca overall and within two microregions. The positive impact of a higher share indigenous population on growth in the relatively urban Valles Centrales microregion suggests a cultural element to policy making with the dependency ratio drag on growth suggesting a need for policies that give more attention to how retirees can continue to participate in the economy as well.

Keywords: Oaxaca; Convergence; Mexico; Religion and crime (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10644-019-09255-7

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