Roads and the Geography of Economic Activities in Mexico
This paper estimates the impacts of road improvements on local employment and specialization in Mexico for 1986-2014, through changes in access to domestic markets and travel costs to ports and the U.S. border. Instrumenting for road placement endo...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/537921509032586880/Roads-and-the-geography-of-economic-activities-in-Mexico http://hdl.handle.net/10986/28611 |
| Summary: | This paper estimates the impacts of road
improvements on local employment and specialization in
Mexico for 1986-2014, through changes in access to domestic
markets and travel costs to ports and the U.S. border.
Instrumenting for road placement endogeneity and addressing
the recursion problem in regressions that involve access to
markets, the analysis finds significant and positive causal
effects of improved domestic accessibility on employment and
specialization. It also finds that employment is stimulated
by lower transport costs to the U.S. border, but harmed by
lower transport costs to ports. Heterogeneous effects are
found across sectors and regions. |
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