Abstract

OCEGUEDA HERNANDEZ, Juan Manuel. Trade and economic growth in Baja California. Inv. Econ [online]. 2005, vol.64, n.251, pp.111-139. ISSN 0185-1667.

This paper estimates the economic growth rate compatible with the trade balance equilibrium in the Baja California Economy. It tests the Kaldor-Dixon-Thirwall approach that proposes that regions should specialize on economic activities exhibiting high dynamic multipliers of foreign demand and increasing returns, in order to achieve higher economic growth rates. The paper shows that this approach explains the long run growth rate of the state and suggests specialization pattern consistent with this theory.