20.500.12556/RUL-134108 Regional convergence and trade liberalization under weak state capacity evidence from Mexico Long-term regional convergence hypothesis is examined for 32 Mexican states in a regional growth model with poverty traps using a new dataset on regional income inequality for the period 1940-2011. Although zero-growth poverty trap hypothesis is rejected for 28 out of 32 states, the evidence confirms alfa- convergence and beta-convergence for the period 1940-1980 and indicates the breakup of convergence in post-1980 period. The break in the convergence process is attributed to trade liberalization carried out under weak state capacity and clientelistic patronage environment without independent and effective regulators. The widening of regional inequality is characterized by an increase in growth in high-income U.S.-border states and no such increase in poorer states that cannot converge to the frontier under such conditions. When long-term convergence relationship is conditioned on unobserved long-run effects, the speed of convergence for pre-1980 period is around 2% per year and diminishes with the estimation horizon. Sensitivity analysis based on income-specific quantile regressions emphasizes substantial heterogeneity in the speed of convergence across states Mexico econometrics economic growth poverty β-convergence σ-convergence panel-data econometrics poverty traps regional inequality Mehika ekonometrija ekonomska rast revščina true false true Angleški jezik Slovenski jezik Članek v reviji 2021-12-23 14:21:31 2021-12-23 14:54:24 2022-09-13 03:53:19 0000-00-00 00:00:00 2021 0 0 Str. 173-216 iss. 2 Vol. 18 2021 0000-00-00 Zaloznikova Objavljeno NiDoloceno 0000-00-00 0000-00-00 0000-00-00 330.4 1824-2979 10.25428/1824-2979/003 84615427 RAZ_Spruk_Rok_2021.pdf RAZ_Spruk_Rok_2021.pdf 1 BB4844F7C96E2FF0E863BC439B0A2F7D d8412f0195d8966922a4df0aebc1f883c3e6930a3ee0dc6da4ae0093f210d384 6db66596-63f7-11ec-abdb-00155dcfd717 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=152424 https://ejce.liuc.it/Default.asp?tipo=articles&identifier=ejce:18242979/2021/02/02 0 7609feb7-63f7-11ec-abdb-00155dcfd717 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=152425 Ekonomska fakulteta 0 0 0