Regional equality index in institutions and entrepreneurship for Mexico

Índice de igualdad regional en instituciones y empresariado para México

Authors

DOI:

https://doi.org/10.29105/ensayos44.2-1

Keywords:

institutions, entrepreneurship, equality index, regions, economic development

Abstract

Objective: This study develops a comprehensive indicator to measure regional equality in Mexico's institutional and business performance, which are fundamental pillars of economic development.

Method: We adapt the United Nations methodology for gender equality measurement to construct a multidimensional index incorporating legal, regulatory, political, economic, and social variables spanning 2002-2021.

Results: The resulting temporal index effectively captures institutional and business performance variations across Mexican regions. Our analysis reveals a strong positive relationship between the index and regional development: regions with higher institutional and business quality consistently demonstrate superior income outcomes.

Limitations: The 20-year study period remains relatively constrained, and quantitative findings may vary depending on which variables are selected as core economic development pillars.

Main findings: Mexican states exhibit a gradual convergence toward equality in institutional and business performance, though this progress has been slow and experienced notable reversals beginning in 2018. The persistent heterogeneity in regional institutional and business system development constrains Mexico's overall economic development potential.

Downloads

Download data is not yet available.

Author Biographies

Jonathan Flores Pérez, Universidad Autónoma de Coahuila

Doctorante del Centro de Estudios e Investigaciones Interdisciplinarios de la Universidad Autónoma de Coahuila (UAdeC). Durante sus estudios de doctorado realizó estancias académicas en el Instituto Juan de Mariana (España) y el EGADE Business School del Tecnológico de Monterrey. Tiene maestría en Economía Regional y licenciatura en Economía (ambos de la UAdeC), programas que lo reconocieron con Mención Honorífica y la Medalla al Mérito Universitario “Juan Antonio de la Fuente”, respectivamente. Ha sido ponente en varios coloquios y congresos de economía de la innovación, institucionalismo y libertad económica y es miembro del Sistema Estatal de Investigadores de Coahuila. Actualmente es director y catedrático en la Facultad de Economía de la UAdeC.

Vicente Germán-Soto, Universidad Autónoma de Coahuila

Doctor en Economía por la Universidad de Barcelona, España, y profesor titular en la Facultad de Economía de la Universidad Autónoma de Coahuila. Ha realizado estadías de investigación en la Universidad de Barcelona, la Universidad de la República y la Universidad Autónoma de Nuevo León. Su trayectoria en investigación y docencia tiene varios premios y el Reconocimiento “Investigador del año” en 2019. Sus intereses de investigación son crecimiento económico regional de México y econometría aplicada. Ha presentado sus investigaciones en congresos nacionales e internacionales, es miembro regular de la Academia Mexicana de Ciencias, de la International Society for Development & Sustainability, investigador estatal honorífico de Coahuila y es nivel III en el Sistema Nacional de Investigadoras e Investigadores.

References

[1] Abdullah, H.; Habibullah, M. y Baharumshah, A. (2009). “Fiscal Policy, Institutions and Economic Growth in Asian Economies: Evidence from the Pedroni’s Cointegration Approach”. International Journal of Business and Management. https://doi.org/10.5539/ijbm.v3n4p107 DOI: https://doi.org/10.5539/ijbm.v3n4p107

[2] Abor, J. Y.; Dwumfour, R. A.; Agbloyor, E. K. y Pan, L. (2024). Foreign direct investment and inclusive finance: do financial markets and quality of institutions matter? Empirical Economics, 67, 773-815. https://doi.org/10.1007/s00181-024-02567-2 DOI: https://doi.org/10.1007/s00181-024-02567-2

[3] Acemoglu, D.; Gallego F. A. y Robinson J. A. (2014). “Institutions, Human Capital, and Development”. Annual Review of Economics, 6(1), 875-912. https://doi.org/10.1146/annurev-economics-080213-041119 DOI: https://doi.org/10.1146/annurev-economics-080213-041119

[4] Acemoglu, D., Johnson, S. y Robinson, J. (2005). “Institutions as Fundamental Cause of Long Run Growth National Bureau of Economic research”, in P. Aghion & S.N. Durlauf (eds.), Handbook of Economic Growth, vol. 1a, 385–472. https://doi.org/10.1016/S1574-0684(05)01006-3 DOI: https://doi.org/10.1016/S1574-0684(05)01006-3

[5] Acs, Zoltan J., Estrin, Saul, Mickiewicz, Tomasz y Szerb, László (2018). Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective. Small Business Economics, 51, 501–514. https://doi.org/10.1007/s11187-018-0013-9 DOI: https://doi.org/10.1007/s11187-018-0013-9

[6] Afonso, O. (2022). The Impact of Institutions on Economic Growth in OECD Countries. Applied Economics Letters, 29(1), 63-67. https://doi.org/10.1080/13504851.2020.1855304 DOI: https://doi.org/10.1080/13504851.2020.1855304

[7] Bandura, W. N. y Dzingirai, C. (2019). Financial Development and Economic Growth in Sub-Saharan Africa: The Role of Institutions. PSL Quarterly Review, 72(291), 315-335. https://doi.org/10.13133/2037-3643_72.291_5

[8] Bates, Robert y Block, Steven. (2018). “Political Institutions and Economic Growth in Africa’s ‘Renaissance’”. Oxford Economic Papers, 70, 327-352. https://doi.org/10.1093/oep/gpx049 DOI: https://doi.org/10.1093/oep/gpx049

[9] Beattie, J. (2005). Other Cultures: Aims, Methods, and Achievements in Social Anthropology. Taylor & Francis, U.K.

[10] Beji, S. (2019). Financial Openness and Income Inequality: Do Institutions matter for Africa? Economics Bulletin, 39(1), 104-114.

[11] Bhattacharjee, J. (2017). Do Institutions Affect Economic Growth? An Empirical Analysis of Selected South Asian Countries. Asian Journal of Comparative Politics, 2(3), 243-260. https://doi.org/10.1177/2057891116671833 DOI: https://doi.org/10.1177/2057891116671833

[12] Bjørnskov, C., y Foss, N. (2013). How Strategic Entrepreneurship and the Institutional Context Drive Economic Growth. Strategic Entrepreneurship Journal, 7(1), 50–69. https://doi.org/10.1002/sej.1148. DOI: https://doi.org/10.1002/sej.1148

[13] Bjørnskov, C., y Foss, N. J. (2016). Institutions, entrepreneurship, and economic growth: what do we know and what do we still need to know? Academy of Management Perspectives, 30(3), 292–315. https://doi.org/10.5465/amp.2015.0135. DOI: https://doi.org/10.5465/amp.2015.0135

[14] Bosma, N., Content, J., Sanders, M. y Stam, E. (2018). Institutions, entrepreneurship, and economic growth in Europe. Small Business Economics, 51, 483–499. https://doi.org/10.1007/s11187-018-0012-x DOI: https://doi.org/10.1007/s11187-018-0012-x

[15] Bruns, K., Bosma, N., Sanders, M. y Schramm, M. (2017). Searching for the existence of entrepreneurial ecosystems: a regional cross-section growth regression approach. Small Business Economics, 49(1), 31–54. DOI:10.1007/s11187-017-9866-6 DOI: https://doi.org/10.1007/s11187-017-9866-6

[16] Camargo Conceição, O. A. C. (2002). Instituições, crescimento e mudança na ótica institucionalista. Porto Alegre: Fundação de Economia e Estatística (Teses FEE n. 1). https://www.academia.edu/30691609/Institui%C3%A7%C3%B5es_crescimento_e_mudan%C3%A7a_na_%C3%B3tica_institucionalista

[17] Coad, A.; Domnick, C.; Santoleri, P. y Srhoj, S. (2025). Regional incidence and persistence of high-growth firms: testing ideas from the entrepreneurial ecosystems literature. Regional Studies, 59(1), artículo 2433498. https://doi.org/10.1080/00343404.2024.2433498 DOI: https://doi.org/10.1080/00343404.2024.2433498

[18] Durkheim, E. (1893). De la división del trabajo social (F. J. León, Trad.). Akal.

[19] Gadelha, A. y Divino, J. A. (2019). Institutions, Growth and Economic Stability. Economics Bulletin, 39(1), 554-563.

[20] Geertz, C. (1973). The Interpretation of Cultures. Selected Essays, U.S., Basic Books, Inc.

[21] Ghandour, M. (2020). The Role of Economic Institutions and Macroeconomic Policies on Inclusive Growth: An Empirical Study in the ESCWA Region. Management Studies and Economic Systems, 5(3/4), 105-115. https://doi.org/10.4102/sajems.v20i1.1607 DOI: https://doi.org/10.12816/0059074

[22] Gumbau-Albert, M. (2024). Understanding the impact of intangible capital on entrepreneurship at the regional level. Journal of the Knowledge Economy, 15, 11063-11089. https://doi.org/10.1007/s13132-023-01511-6 DOI: https://doi.org/10.1007/s13132-023-01511-6

[23] Farè, L.; Audretsch, D. B. y Dejardin, M. (2023). Does democracy foster entrepreneurship? Small Business Economics, 61, 1461-1495. https://doi.org/10.1007/s11187-023-00737-7 DOI: https://doi.org/10.1007/s11187-023-00737-7

[24] Fossen, F. M.; König, J. y Schröder, C. (2024). Risk Preference and Entrepreneurial Investment at the Top of the Wealth Distribution. Empirical Economics, 66, 735-761. https://doi.org/10.1007/s00181-023-02475-x DOI: https://doi.org/10.1007/s00181-023-02475-x

[25] Fritsch, M.; Potter, J.; Qian, H. y Fotopoulos, G. (2025). Persistence and change in regional entrepreneurship performance: a three-economy comparison. Regional Studies, 59(1), artículo 2474033. https://doi.org/10.1080/00343404.2025.2474033 DOI: https://doi.org/10.1080/00343404.2025.2474033

[26] Germán-Soto, V. y Marines López, A. (2023). Modelando crecimiento y rentabilidad empresarial de la industria de Coahuila. Ensayos Revista de Economía, 42(1), 1–32. ISSN: 2448-8402. https://doi.org/10.29105/ensayos42.1-1 DOI: https://doi.org/10.29105/ensayos42.1-1

[27] Haini, H. (2020). Examining the Relationship Between Finance, Institutions and Economic Growth: Evidence from the ASEAN Economies. Economic Change and Restructuring, 53, 519-542. https://doi.org/10.1007/s10644-019-09257-5 DOI: https://doi.org/10.1007/s10644-019-09257-5

[28] Hodgson, G. M. (2011). ¿Qué son las instituciones? Revista CS, 8, 17-53. https://doi.org/10.18046/recs.i8.1128 DOI: https://doi.org/10.18046/recs.i8.1128

[29] Holcombe, R. G. (2021). Entrepreneurial Economies. Economies, 9, article 123. https://doi.org/10.3390/economies9030123 DOI: https://doi.org/10.3390/economies9030123

[30] Instituto Mexicano para la Competitividad (IMCO) (s.f.). Índice de competitividad estatal. Ciudad de México, IMCO. https://imco.org.mx/indices/

[31] Josifidis, K. y Supic, N. (2021). (Are) Institutions More Important Than Innovation? Journal of Economic Issues, 55(2), 334-341. https://doi.org/10.1080/00213624.2021.1908086 DOI: https://doi.org/10.1080/00213624.2021.1908086

[32] Kapp, K. W. (2021). En defensa de la economía institucional. Revista De Economía Crítica, 1(8), 183–200.

[33] Mantzavinos, C., North, Douglass C. y Shariq, S. (2003). Learning, Institutions, and Economic Performance. MPI Collective Goods Preprint No. 2003/13. Disponible en SSRN: https://ssrn.com/abstract=510902

[34] Martínez-Navarro, D.; Amate-Fortes, I.; Guarnido-Rueda, A. y Oliver-Márquez, F. J. (2022). Institutional Kuznets Curve? An Empirical Analysis with Panel Data. Structural Change and Economic Dynamics, 63, 35-39. https://doi.org/10.1016/j.strueco.2022.08.008 DOI: https://doi.org/10.1016/j.strueco.2022.08.008

[35] Mendoza Camacho, J. A. y López Portillo Tostado, C. (2020). La calidad de las instituciones, su impacto en la relación entre corrupción y crecimiento económico: una revisión teórica. Economía: Teoría y Práctica, 52, 15-41. https://doi.org/10.24275/etypuam/ne/522020/mendoza DOI: https://doi.org/10.24275/ETYPUAM/NE/522020/Mendoza

[36] Mitchell, W. C. (1927). Business Cycles: The Problem and Its Setting. National Bureau of Economic Research.

[37] Nawaz, S. y Khawaja M. I. (2019). Fiscal Policy, Institutions and Growth: New Insights. The Singapore Economic Review, 64(05), 1251-1278. https://doi.org/10.1142/S0217590816500296 DOI: https://doi.org/10.1142/S0217590816500296

[38] North, D. C. (1993). Instituciones, cambio institucional y desempeño económico. México, Fondo de Cultura Económica.

[39] North, D. C. y Thomas, R. P. (1973). The Rise of the Western World: A New Economic History. U. K., Cambridge University Press. DOI: https://doi.org/10.1017/CBO9780511819438

[40] Okoh, A. S. y Ebi, B. O. (2013). Infrastructure Investment, Institutional Quality, and Economic Growth in Nigeria: An Interactive Approach. European Journal of Sciences Human and Social, 26, 1342-1358.

[41] Prasetyo, P. E. y Kistanti, N. R. (2020). Human capital, institutional economics and entrepreneurship as a driver for quality & sustainable economic growth. Entrepreneurship and Sustainability Issues, 7(4), 2575-2589. https://doi.org/10.9770/jesi.2020.7.4(1) DOI: https://doi.org/10.9770/jesi.2020.7.4(1)

[42] Radulović, M. (2020). The Impact of Institutional Quality on Economic Growth: A Comparative Analysis of the EU and Non-EU Countries of Southeast Europe. Economic Annals, 65(225), 163-181. https://doi.org/10.2298/EKA2025163R DOI: https://doi.org/10.2298/EKA2025163R

[43] Robinson, D. y Acemoglu, D. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. New York, Crown Publishers. DOI: https://doi.org/10.1355/ae29-2j

[44] Wittberg, E.; Erlingsson, G. Ó. y Wennberg, K. (2024). Does Local Government Corruption Inhibit Entrepreneurship? Small Business Economics, 62, 775-806. https://doi.org/10.1007/s11187-023-00783-1 DOI: https://doi.org/10.1007/s11187-023-00783-1

[45] Wanjuu, L., y Le Roux, P. (2017). Economic institutions and economic growth: Empirical evidence from the Economic Community of West African States. South African Journal of Economic and Management Sciences, 20(1), a1607. https://doi.org/10.4102/sajems.v20i1.1607. DOI: https://doi.org/10.4102/sajems.v20i1.1607

Published

2025-07-30

How to Cite

Flores Pérez, J., & Germán-Soto, V. (2025). Regional equality index in institutions and entrepreneurship for Mexico: Índice de igualdad regional en instituciones y empresariado para México. Ensayos Revista De Economía, 44(2), 125–158. https://doi.org/10.29105/ensayos44.2-1

Issue

Section

Articles

Most read articles by the same author(s)

Similar Articles

1 2 3 4 5 6 7 8 9 > >> 

You may also start an advanced similarity search for this article.