Regional Inequalities in Mexico, 1900-1993

Abstract

This study reviews the traditional models of regional inequality; the neoclassical, the accumulative circular causation and Williamson's bell-shaped model. It then illustrates Solow's endogenous growth model and finally shows the link between national economic growth, demographic decentralization and regional disparities. Using data from the per capita GDP of Mexican states during the period from 1900 to 1993, the author estimates the convergence indices for different periods. Although there was a clear convergence during the period from 1940 to 1970, this does not fit in with the proposed association; greater economic growth, increased demographic concentration and greater regional inequalities.