The Interaction of Economic Reforms, Socio‐economic Structure and Agriculture in Mexico

Abstract

National policydecisions in developing countries contribute to the increasing integration of agriculture into national and world economies. The spatial consequences of national policies, however, vary across regions and agricultural systems. Employing and adapting a methodology first proposed by King (1970), this study explores the relationship between national policy, agriculture, and population characteristics at the regional level in Mexico during the presidency of Carlos Salinas de Gortari (1988–94). Statistical analyses corroborate the hypothesis that the impact of policy reforms on the agricultural sector in Mexico is mediated by the characteristics of the population. Results suggest that government credit for agriculture and federal funding of rural development during the Salinas de Gortari administration were mediated by factors associatedwith the level of urbanization. The provision of commercial credit at the regional level, however, does not appear to depend on population characteristics. Disparities in the impact of national policies are attributed to a historical urban bias, the differential ability of more highly urbanized states to attract government funding, manage and implement programs, and the existence of highly profitable, commercial agriculture in more developed states.