The Trend of the Inclusive Development Index Across Federal States of Mexico Between 2000–2016 : A Convergence Analysis

From 2000 onwards, various studies (Esquivel 1999; Villalta 2003; Aguayo 2004; Gómez & Ventosa 2012; Ocegueda, 2015) have tested whether economic convergence - GDP convergence - took place in Mexico or not as a way to study regional disparities in development across the country. This paper proposes a wider approach, studying said disparities in a multidimensional way that gives importance to other development measures besides GDP (as previously done by Molina & Purser, 2010; Konya & Guisan, 2008; Capello et al., 2011). The convergence (β and σ-convergence) of the Inclusive Development Index (IDI), an indicator that incorporates various dimensions of development besides GDP per capita, is evaluated. This analysis is based on a biannual panel data model with information for the Mexican states and Mexico City for the 2000-2016 period. The main objective is to determine whether development disparities among the Mexican states increased or reduced during the 2000-2016 period through the analysis of the trend of the IDI and its components. Results show that regional convergence of the IDI took place among Mexican states. Said convergence was mainly influenced by the variables of the inclusion component of the index, whilst variables from the growth and development and sustainability components, although present β- convergence, do not show σ-convergence