Estabilidad del crecimiento de largo plazo en los estados de la República Mexicana: nueva evidencia de pruebas de estacionariedad en panel con rupturas estructurales

Abstract

In this paper, the stability of the Mexican Republic's states’ stationary state is dealt with applying a relatively new panel stationarity test including structural breaks. Such technique allows for controlling: a) non-observed heterogeneity of structural breaks in the trend function; b) cross-section dependency among units, using bootstrapping methods; and c) error serial correlation. Most Mexican states, according to our empirical results, exhibit heterogeneous types of breaks. Those states experiencing economic deceleration in the aftermath of structural breaks are unable to recover from adverse impacts and, thereby, will not return to their previous path of balanced economic growth.