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Results from studies of the relationship between road infrastructure and regional economic growth have so far been inconclusive. This paper analyzes the effect of the availability of road infrastructure on regional production in Mexican municipalities. At a regional level, the extent of road availability in a municipality was determined using an Geographic Information System (gIS) and ordinary least squares analysis, which identified the existence of a positive relation between road density and production in municipal regions. It was shown that the most significant impact of roads on gross regional production is in the manufacturing and retail sectors, while roads have no significant impact on agriculture, livestock production, fishing, and mining. Toll-free roads in particular afford increased regional benefits in comparison to toll roads. [ABSTRACT FROM AUTHOR]

This paper reports time series evidence on the influence of financial deepening on growth and its volatility, for the cases of Mexico and the USA. The paper contributes to the existing empirical literature in two relevant aspects. First, it focuses on two closely interconnected economies but quite different in terms of economic and financial development. Second, it uses time series methods to examine the relation between financial development and the volatility of growth. We find that, in the case of the USA, financial and money deepening seem to affect real output growth, but finance does not show a significant relation with growth volatility. In the case of Mexico, economic growth seems to precede financial deepening, while money deepening and output growth interact. We also find some evidence that financial deepening reduces the volatility of growth. This, in turn, leads to more rapid output growth. Further, faster growth in the USA may result in faster growth in Mexico not only directly, a fact that is well known, but also through a reduction of Mexico's growth volatility. [ABSTRACT FROM AUTHOR]

This paper studies the link between economic growth and state industrial capital stock accumulation using panel data techniques in the time period 1960-2012. The analysis is done in two moments: the age of national industrialization (1960-1982) and the structural reform era (1983-2012). The results point to a long-term relationship in both periods, but with a sign opposite of the expected sign in the latter, suggesting that the deceleration of industrial capital can explain the slowdown over the past three decades. This result is confirmed with the decline of manufacturing, as well as other economic indicators. The causality tests demonstrate two-way causality between the two variables, evincing a virtuous cycle between growth and accumulation. [ABSTRACT FROM AUTHOR]

In this paper we made some reflections about that, despite trade liberalization in Mexico, this has not led to high economic growth. A. P. Thirlwall establishes the importance of manufactured exports to generate greater economic growth. Assuming Thirlwall's law, we establish a measurement to verify contribution of exports to economic growth efforts. The main result is that is very low the growth obtained with restriction of balance of payments, and ranges between -1 and 2 per cent. Additionally, the evolution of investment relative to gross domestic product is displayed and is performed an econometric estimation to evaluate the impact of increased investment to economic growth, finding also that the context of openness and given the economic dynamics, does not favor the investment process. [ABSTRACT FROM AUTHOR]

Economic opening and the dearth of federal-sponsored sectoral industrial policies pose a novel challenge for subnational governments at the dawn of the new century. This paper will argue that rather than the Mexican state entirely abandoning industrial policy, what really happened was that developmentalist functions were transferred to or appropriated by the subnational level. To do so, two states in the Mexican Republic whose sectoral industrial policies sharply contrast with the federal government-level backpedaling were examined. The literature of "new developmentalism" will serve as the backdrop to this new subnational role in Mexico, marking a divergence from the neoliberal paradigm at the federal level. [ABSTRACT FROM AUTHOR]

T his paper analyzes the economic vulnerability and economic resilience of Baja California, Mexico, in the context of the 2007 international financial crisis. A methodological approach is proposed to develop vulnerability and resilience indexes, and the region's economic performance from 2003 to 2014 is compared to the other entities. Economic performance is measured by unbundling the SGDP into its cyclical and non-cyclical components (trend). In conclusion, when faced with an external shock, Baja California shows economic vulnerability but also strong economic resilience. [ABSTRACT FROM AUTHOR]

Recent literature has empirically demonstrated that the real exchange rate is essential to explaining the economic evolution of developing countries. It has been empirically proven that the anti-inflation exchange rate policy implemented systematically in Mexico has constituted a major restriction on the country's economic growth, a restriction that has persisted throughout this entire time period, even through different monetary and exchange rate regimes. This paper estimates an svar (1950-2014) that shows how the continuous appreciation of the real exchange rate has curbed Mexico's economic growth capacity and had an impact on other macroeconomic balances. This alone could be considered a highly potent structural macroeconomic reform. [ABSTRACT FROM AUTHOR]