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This paper evaluates the importance of infrastructure on economic growth for the Mexican northern border municipalities. From the growth literature, we know that infrastructure, besides other factors, has been pointed out as a key factor in the long run perspectives of regional growth. Nevertheless, and within this thematic context, works that use a disaggregated analysis down to the level of the municipality are still scarce, which in the case of the northern border constitutes a scenario of much relevance given the development model adopted by the Mexican economy in recent decades. Empirical models results indicate that the municipalities of Piedras Negras, Nogales and Torreon maintain a positive relationship between physical infrastructure and growth. In the case of other municipalities like Tijuana, its elevated population growth inhibits a proper infrastructure allocation, although the positive effect induced by infrastructure on growth remains. [ABSTRACT FROM AUTHOR]

This paper analyzes the prospect of economic recovery and the comovement of regional and national economy with a focus on business cycles theory in 1997-2010. We estimate the trend and cycle of composition of growth in each entity with the Hodrick-Prescott filter and an autoregressive model, using employment data. The evidence shows that Nuevo Leon has the capacity to return to its trend growth, but Baja California and Chihuahua has less possibility. Finally, short-term dynamics of these economies shows that the degree of synchronization with the national economy seems to play for the recovery of growth. [ABSTRACT FROM AUTHOR]