Abstract
This paper uses multiple regression analysis to determine the extent to which the regional distribution of public investment policies before and after the Mexican debt crisis and the opening of the country to trade have responded primarily to efficiency or redistribution criteria. The results highlight that the regional allocation of public investment funds in Mexico since 1970 seems to follow neither redistribution, nor efficiency criteria. In addition, there is no evidence that the allocation of funds has a positive effect on regional growth. The most likely explanation is that pork-barrel politics has played a key role in the regional distribution of funds, and probably has contributed to lowering their economic impact.
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