Regional disparities in Mexico and the spatially cumulative effects of national development and economic cycles, 1940-2013

Mexico's regional disparities and national economic performance in the 1940-2013 period is measured to test the question of whether regional imbalances expand or contract with the national economy's growth or decline, and also the question of disparities increasing or decreasing depending on the country's stage of development. Given the recurring waves of recession and stagnation in Mexico in recent decades, determining the cyclicality of disparities is of particular interest for regional policy-making. In the long run, regional inequalities exhibit a U-shape. Results also indicate that while the decrease in disparities during the most severe economic downturns during the liberalized period is striking, there is no strong statistical support for the pro-cyclical evolution of regional inequalities.