Next Article in Journal
The Effects of Poverty and Prison on British Muslim Men Who Offend
Next Article in Special Issue
Capability Deprivation, and the Intergenerational Transmission of Social Disadvantages—Empirical Evidence from Selected Countries
Previous Article in Journal
Feminists against Sexual Violence in War: The Question of Perpetrators and Victims Revisited
Previous Article in Special Issue
Economic Impact of Development Initiatives on Low-Income Households in Kelantan, Malaysia
Article Menu

Export Article

Open AccessArticle
Soc. Sci. 2018, 7(10), 183; https://doi.org/10.3390/socsci7100183

Poverty and Economic Growth in Mexico

Department of Economics, Universidad de Monterrey, 66238 San Pedro Garza García, Mexico
Received: 22 August 2018 / Revised: 25 September 2018 / Accepted: 28 September 2018 / Published: 30 September 2018
(This article belongs to the Special Issue Inequality and Poverty)
Full-Text   |   PDF [274 KB, uploaded 9 October 2018]

Abstract

The relationship between poverty and economic growth has been widely discussed in the economic development literature during the past few decades. However, most of this research has been based on cross-sectional studies and very few studies have used time-series techniques to analyze this important issue. At the same time, there are also only a few studies analyzing this issue for the case of Mexico. Therefore, the objective of this paper was to analyze the relationship between poverty and economic growth in Mexico, using a cointegration analysis with structural change for the period 1960–2016. The Gregory-Hansen cointegration test confirmed the existence of a long-term equilibrium relationship between poverty reduction and economic growth, both in the short run and in the long run. Using a Vector Error Correction Model (VECM), we find that, in the long run, a 1% increase in economic growth leads to a 2.4% increase in per capita consumption (and therefore poverty reduction). This estimate is similar to those obtained in other studies for the case of Mexico and for other developing countries. Also, using the Granger causality test, it was found that there is a bidirectional causality relationship between poverty reduction and economic growth in Mexico. View Full-Text
Keywords: poverty; economic growth; economic development; Mexico poverty; economic growth; economic development; Mexico
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Garza-Rodriguez, J. Poverty and Economic Growth in Mexico. Soc. Sci. 2018, 7, 183.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Soc. Sci. EISSN 2076-0760 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top