Geography and Economic Development in Mexico

Gerardo Esquivel ()

No 3089, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This document analyzes the role of geographic characteristics in explaining the pattern of regional economic development in Mexico. The results indicate that some geographic variables, such as climate and vegetation, explain an important part of the differences that exist in the level and rate of growth of income per capita in various Mexican states. A simple analysis of the determinants of life expectancy and average schooling shows that geographic aspects also play an important role in explaining the inter-state differences in these variables in Mexico. The results suggest that geography may exercise a possible influence on regional economic development by way of its effect on human capital. Finally, this paper examines the contribution of geographic variables to regional inequality in Mexico. The results of this exercise demonstrate that geographic factors are what have most contributed to regional inequality in Mexico. (Available only in Spanish)

Date: 2000-04
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