The Effect of Drug-Related Violence on Labor Productivity in Mexico: A Spatial Panel Data Analysis

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Date

1 janvier 2019

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Ce document est lié à :
10.14350/rig.60021

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SciELO

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info:eu-repo/semantics/openAccess




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David Saucedo De La Fuente et al., « The Effect of Drug-Related Violence on Labor Productivity in Mexico: A Spatial Panel Data Analysis », Investigaciones geográficas, ID : 10670/1.06lr2f


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This study examines the determinants of labor productivity for Mexico at the state level over the period 2003-2016 using annual data. The GMM technique is used to estimate a spatial panel data model that includes a spatial weight matrix (W), the spatial lag of the dependent variable (ρ), the spatially weighted average of lagged drug-related violence rate (θ), the spatial lag of the error term (λ), and adds instrumental variables to control for the endogeneity of drug-related violence. Our results indicate that drug-related violence exerts a negative and significant impact on labor productivity. Similarly, there is evidence of the negative spillover effects of drug-related crimes on regional GDP per worker. Public investment per capita has a highly significant effect on labor productivity while the impact of the 2008-2009 financial crisis was negative.

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