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Convergence with Stagnation: Mexico's Growth at the Municipal level 1990-2010

Maria E. Davalos, Gerardo Esquivel (), Luis Lopez-Calva () and Carlos Rodríguez-Castelán
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Maria E. Davalos: World Bank

Working Paper Series Sobre México from Sobre México. Temas en economía

Abstract: Using municipality-level income data this paper tests for income convergence across municipalities in Mexico from 1990 to 2010. With a unique dataset obtained using the small-area estimation method of poverty mapping, results show that the income of poorer municipalities has grown faster than that of richer municipalities (beta-convergence) in the period under study, particularly from 2000 to 2005. Even with this pattern of beta-convergence across the period, regional disparities (sigma-convergence) only started to fall in the 2000s, after a sharp increase from 1990 to 2000. The convergence process observed in Mexico, however, seems to stem from a combination of positive and relatively higher income growth for those at the very bottom of the income distribution of municipalities and negative growth for those at the top. For the vast majority of municipalities the growth rate of income has been virtually stagnant throughout the period.

JEL-codes: O47 O54 R11 (search for similar items in EconPapers)
Date: 2015-09-24
New Economics Papers: this item is included in nep-ure
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