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Spatial Patterns of Non-Agricultural Employment Growth in Rural Mexico During the 90s

Araujo, Caridad, Alain de Janvry, and Elisabeth Sadoulet. 2004. “Spatial patterns of non-agricultural employment growth in rural Mexico during the 90s” Territorio y Economia 5: 11-28.


We analyze the expansion of non-agricultural rural employment in manufacture and services in Mexican municipalities during the 1990s and explore the role of geographical features in explaining the local and regional supply of non-agricultural rural employment opportunities. We identify the presence of positive externalities from non-agricultural rural employment expansion in nearby areas. In addition, we find that proximity to urban centers with large services or manufacturing sectors is important in explaining rural employment growth outcomes. Alternatively, for municipalities faraway from urban centers, a larger proportion of the growth in non-agricultural employment (in particular in manufacture) comes from the interaction between a high-value agriculture and availability of roads.

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