Causes of uneven economic growth of the northern and southern Mexico in the NAFTA era.

Abstract

The convergence analysis does not provide conclusive evidence of divergence or convergence in terms of per capita GDP at state level in Mexico during the period 1994-2006. However, a strong geographical pattern is found in the regional growth model. Having established a typology of states, the causes that generated economic growth in the northern border and stagnation or decline in the southern states are analyzed. Differences

in the degree of industrialization, in the agricultural productivity, and in the endowments of human and physical capital, are the main causes of these dynamics.