Various studies suggest that regions with larger stocks of physical infrastructure and human capital often
exhibit comparatively robust economic performance. The research at hand examines whether this is the case
for regions within Mexico using data from the 2010 Census and other sources. Aggregate production
functions are estimated in order to analyze the determinants of economic performance across Mexican states.
Explanatory variables include kilometers of highways, airport runway lengths, percentages of adults in each
state with education beyond the primary level, and the number of certified researchers as a share of the
national total. In line with prior research, results indicate that regional-level investments in transportation
infrastructure and education will likely facilitate economic growth in Mexico. An out-of-sample policy
simulation is used to further quantify regional economic throughout the country.