Article
A Stochastic Walk Down Mexico’s Mesoamerican Frontier, 1990-2011
Applied Econometrics and International Development
(2015)
Abstract
Local economic growth 1990-2011 along Mexico’s southern border is analyzed using a stochastic production function with subject-specific fixed effects and the convergence literature. An underlying Translog technology fits the data well with excess physical capital and labor evident. Local border economies converged following a neoclassical growth paradigm though growth in total factor productivity was negative due to diseconomies of scale. Mean technical efficiency is quite low (31%) with relatively lower efficiency on the Mexican side of the frontier. A greater focus on the economic development of municipios located directly on either side of the border is suggested along with investments designed to improve technical change.
Keywords
- Border Economy,
- Municipios,
- Efficiency
Disciplines
Publication Date
November, 2015
Citation Information
Gregory J. Brock and Constantin Ogloblin. "A Stochastic Walk Down Mexico’s Mesoamerican Frontier, 1990-2011" Applied Econometrics and International Development Vol. 15 Iss. 2 (2015) p. 99 - 114 ISSN: 1578-4487 Available at: http://works.bepress.com/gregory_brock/150/