Regional convergence in México, considering the participation of the agricultural and livestock GDP (1940-2010)
DOI:
https://doi.org/10.22231/asyd.v14i2.587Keywords:
Cobb-Douglas, economic convergence, incomeAbstract
In México there is a debate as to whether the free trade process, begun at the end of the 1980s and beginning of the 1990s, has generated a process of regional divergence. The objective of this study was to evaluate the evolution of the per capita income in the states of the Mexican Republic, using the neoclassic growth model and considering two criteria of agricultural and livestock participation. The first is the inclusion of a variable of structural change from the Domestic Gross Product of the primary sector, and the second is a classification of the states based on their participation in the agricultural and livestock domestic product and their level of employment in relation to the national level. For this study a linear regression model with ordinary least squares and data from the 1940-2010 period were used. The main results show a process of absolute convergence between the states when fictitious regional variables and of random disturbances are used. It is concluded that it is not possible to demonstrate a process of economic divergence, but rather one that is not stable in the time of economic convergence.References
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