Financing rural economies: An approach to the case of Mexico

Abstract

Economic growth is crucial for achieving social development goals. Rural economies are a fundamental part of countries and need to be strengthened. The objective of this research is to analyze how rural economies are financed, specifically in the case of Mexico. This topic is relevant given the current change of government in Mexico and the expectations surrounding the need for these economies to receive attention. The methodology was primarily qualitative and describes how public funding is provided to rural economies in Europe, the United States, and Mexico. In the case of Mexico, data on economic growth variables (Gross Domestic Product, sectoral Gross Domestic Product and federal financing rural development) are used. The data is collected annually. The results reveal patterns of slow economic growth and persistent decapitalization in these areas throughout the period. This research concludes that there is a need to promote policies and strategies aimed at revitalizing these economic regions.