Capital Accumulation and State Growth in Mexico: A Panel Data Analysis

This paper studies the link between economic growth and state industrial capital stock accumulation using panel data techniques in the time period 1960-2012. The analysis is done in two moments: the age of national industrialization (1960-1982) and the structural reform era (1983-2012). The results...

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Bibliographic Details
Authors: Rodríguez Benavides, Domingo, Mendoza, Miguel Ángel, Martínez, Miguel Ángel
Format: article
Status:Published version
Publication Date:2021
Country:México
Institution:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repository:Problemas del Desarrollo. Revista Latinoamericana de Economía
Language:Spanish
English
OAI Identifier:oai:ojs.pkp.sfu.ca:article/61286
Online Access:https://www.probdes.iiec.unam.mx/index.php/pde/article/view/61286
Access Level:Open access
Keyword:Industrialization
economic growth
capital accumulation
investment
panel data
industrialización
crecimiento económico
acumulación de capital
inversiones
datos de panel
Description
Summary:This paper studies the link between economic growth and state industrial capital stock accumulation using panel data techniques in the time period 1960-2012. The analysis is done in two moments: the age of national industrialization (1960-1982) and the structural reform era (1983-2012). The results point to a long-term relationship in both periods, but with a sign opposite of the expected sign in the latter, suggesting that the deceleration of industrial capital can explain the slowdown over the past three decades. This result is confirmed with the decline of manufacturing, as well as other economic indicators. The causality tests demonstrate two-way causality between the two variables, evincing a virtuous cycle between growth and accumulation.