Abstract

VAZQUEZ-COTERA, Daniel  and  MORENO-GARCIA, Elena. Factors that limit the participation of private investment in the historical center of the City of Veracruz, Mexico. Econ. soc. territ [online]. 2010, vol.10, n.33, pp.513-539. ISSN 2448-6183.

For a decade the local government of Veracruz has undertaken important actions to foster the revitalization of its historical center; with these projects it intends to encourage the population to restore, buy or sell real estate in the area. Nonetheless, thus far the incentives to achieve this have turned out insufficient to attract private investment. Before this situation, in the present document, we analyze the factors that determine private participation in urban revitalization processes in order to evaluate the strategy of the local authority. The results show it is convenient to restate some actions to increase the chance of private participation, since nowadays both fundamental aspects of risk and returns associated to decisions are not considered.

Keywords : revitalization of the historical center; barriers to private participation; fiscal incentives.