Domingo Rodríguez Benavides, Francisco López Herrera, Miguel Ángel Mendoza González

Regional convergence clubs in mexico: an analysis through a non-linear model of a single factor

This work shows the results of our research on the convergence hypothesis among the GDP of the Mexican states from 1970 to 2012 through the one factor non-linear model with time-varying coefficients as propounded by Phillips and Sul (2007). This highly flexible approach is fitted to model a number of transition paths to convergence, no requiring any special assumption about the non stationary of the panel series under analysis. We found evidence of relative convergence with state among six groups or convergence clubs and if the oil producer’s states are excluded of the sample, the results hold independently.

Keywords: economic growth; regional convergence; non-linear models

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