Abstract

BARCELATA CHAVEZ, Hilario. Poverty Circles and Municipal Finances in Mexico. Econ: teor. práct [online]. 2015, n.42, pp.69-103. ISSN 2448-7481.

The economic development of Mexican municipalities shows advances, lagging, and backwardness distributed unequally through the national territory, and within each one of them, which brings us to the question: Which are the factors that determine this picture? The objective of this article is look at the hypothesis that considers three causal factors: the public expenditure policy that allows a balance between economic growth and human development, the unequal allocation of public resources of each municipality and the efficiency of the public administration. For this purpose, the municipalities were categorized into four groups according to their progress or backwardness. Then, financial indicators are analyzed to obtain a clear idea of how the public finances influence the municipal’s development.

Keywords : poverty; regional economic inequality; local public finance; public expenditure; human development.