OECD Territorial Reviews: Hidalgo, Mexico

image of OECD Territorial Reviews: Hidalgo, Mexico

Hidalgo is one of the smallest states in Mexico. It benefits from its close proximity to Mexico City and contains a number of economic and environmental assets in its territory. After a long period of economic stagnation, the state is now closing up the gap with national standards. Yet, productivity and income levels remain low with respect to national levels, and there exist high socio-economic disparities between the south of the state and the municipalities in the northern and mountainous area. This review looks at how the state of Hidalgo is seeking to boost its economy, particularly through a series of institutional reforms and policies to improve the business environment. It highlights opportunities to accelerate the economic convergence and transit towards high-value added economic sectors. The review also identifies a number of recommendations to promote inclusive growth and reduce its north-south divide and offers suggestions to address governance challenges in the territory.



Drivers of growth and challenges for regional development

This chapter assesses the economy of Hidalgo and serves as a basis for policy recommendations in the following chapters. The chapter contains five parts. The first part sets the scene by outlining the most influential national trends affecting the economy of Hidalgo. The second part assesses territorial inequalities and population dynamics by carefully identifying current and future demographic and concentration trends. The third part evaluates the economic structure and performance of Hidalgo against other Mexican regions, as well as a benchmark group of OECD regions with similar characteristics. The fourth part is devoted to analysing labour market structure and dynamics, with a strong emphasis on the informal labour market relying on individual-level and sectoral data. The last part makes a diagnosis in terms of poverty and well-being trends and identifies territorial inequalities in terms of access as a major factor affecting present and future levels of well-being in the state.


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