Economic Convergence in the Mexico-United States Cross-border Region: A Post-crisis Analysis 2010–2019

ABSTRACT

This research aims to estimate the σ and β convergence hypotheses for the period following the 2008 crisis (2010–2019) in the states of the Mexico-United States border region. The objective is to determine whether the disparities in per capita income have decreased during that period. Panel and spatial panel methodologies are employed to confirm the β-convergence hypotheses, taking into account heterogeneity, spatial dependence, and the endowment of human capital as conditioning factors. The σ-convergence is estimated using standard deviation. The results indicate the presence of σ-convergence and conditional β-convergence. However, a higher endowment of human capital does not necessarily lead to increased convergence rates due to existing differences between the two economies. In conclusion, there is a need to formulate public policies in Mexico that promote educational attainment among the population residing in the northern border region.

KEYWORDS:

• Human capital
• convergence
• regional economic growth
• panel data
• spatial econometrics

Disclosure statement

No potential conflict of interest was reported by the author(s).