Abstract

RODRIGUEZ-BENAVIDES, Domingo; MENDOZA-GONZALEZ, Miguel Ángel  and  VENEGAS-MARTINEZ, Francisco. Does regional convergence actually exist in Mexico? A non-linear panel-data TAR model. Econ. soc. territ [online]. 2016, vol.16, n.50, pp.197-227. ISSN 2448-6183.

This paper analyzes the hypothesis of regional convergence in Mexico for the period of 1970-2012, through a non-linear growth model. The methodology combines three approaches: the panel-data threshold autoregressive (TAR) model, the unit root tests in panel and the computation of the critical values by bootstraping simulation. The empirical results of the nonlinear model applied to the per capita GDP of different groups of states in Mexico suggest that the proposed model is superior to the linear model and show evidence of partial and absolute convergence for the group of the eleven "richer" states in certain sub-periods.

Keywords : economic growth; regional convergence in Mexico; non-linear unit root tests in TAR models; panel-data threshold autoregressive (TAR) models.