Local poverty reduction in Chile and Mexico: The role of food manufacturing growth

This paper analyzes the relationship between local poverty and food manufacturing growth in Chile and Mexico using propensity score matching, differences in differences and spatial econometrics methods. We focus on food manufacturing as a sector with a number of characteristics that make it potentially pro-poor, and whose incentives for spatial distribution may either strengthen or dampen its poverty reduction potential. The overall results indicate that i) geographically, food manufacturing locates in relatively poor areas, but not in the poorest; ii) food manufacturing tends to locate in municipalities with more availability of labor and raw materials and with better infrastructure; iii) controlling for other factors, food manufacturing growth contributes to local poverty reduction both in terms of magnitude and speed.


Issue Date:
2015
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/211449
Total Pages:
44
JEL Codes:
I32; R11; R12




 Record created 2017-04-01, last modified 2017-08-28

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