The Real Oaxaca Decomposition: Convergence within Mexico’s Oaxaca Region in the Twenty-First Century — Do Types of Crime and Religious Belief Matter?

Brock, G. Econ Change Restruct, 2020, 53(4), 543-569

DOI: 10.1007/s10644-019-09255-7

Posted: 28 Dec 2019 Last revised: 27 Oct 2020

See all articles by Gregory J. Brock

Gregory J. Brock

Georgia Southern University - Department of Economics

Date Written: October 26, 2018

Abstract

The paper empirically examines municipality convergence within Mexico’s southern Oaxaca region. We find municipalities are converging more rapidly than the “iron law” of 2% with up to 8% β convergence. Though homicides from the Drug War have negatively impacted growth, overall crime perhaps through strengthening local institutions has a positive but weak impact. Higher income inequality and Catholic belief are associated with higher per capita GDP growth in Oaxaca overall and within two micro-regions. The positive impact of a higher share indigenous population on growth in the relatively urban Valles Centrales micro-region suggests a cultural element to policy making with the dependency ratio drag on growth suggesting a need for policies that give more attention to how retirees can continue to participate in the economy as well.

Keywords: Oaxaca, Convergence, Mexico, Religion and Crime

JEL Classification: O18, O47

Suggested Citation

Brock, Gregory, The Real Oaxaca Decomposition: Convergence within Mexico’s Oaxaca Region in the Twenty-First Century — Do Types of Crime and Religious Belief Matter? (October 26, 2018). Brock, G. Econ Change Restruct, 2020, 53(4), 543-569, DOI: 10.1007/s10644-019-09255-7, Available at SSRN: https://ssrn.com/abstract=3499662

Gregory Brock (Contact Author)

Georgia Southern University - Department of Economics ( email )

P.O. Box 8153
Statesboro, GA 30460-8153
United States
912-478-5579 (Phone)

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