Using a spatial dynamic panel, the long-run industrial sector convergence rate across Mexico's states is found to be 2%. The model is a system-General Method of Moments with correction for spatial autocorrelation and an explicit human capital input. The significant inequality between the richest...

The paper empirically examines municipality convergence within Mexico's southern Oaxaca region. We find municipalities are converging more rapidly than the “iron law” of 2% with up to 8% β convergence. Though homicides from the Drug War have negatively impacted growth, overall crime perhaps...