The Real Oaxaca Decomposition: Inflation-Adjusted Convergence within Mexico’s Oaxaca Region in the 21st century

Document Type

Presentation

Presentation Date

November 2018

Abstract or Description

Oaxaca’s municipalities are converging more rapidly than the “iron law” of 2% since2000. Though homicides from the Drug War have negatively impacted growth, overall crimeperhaps through strengthening local institutions has a positive but weak impact. Higher incomeinequality and Catholic belief are associated with higher per capita GDP growth in Oaxacaoverall and two internal regions. Poverty and loss of working age population hamper growthsupporting continuing anti-poverty policies in the region. The share of the population that isindigenous may improve growth in the relatively urban Valles Centrales region suggesting acultural element to policy making within Oaxaca.

Sponsorship/Conference/Institution

Southern Economics Association

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