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Extending the “voting with the feet” proposition: the impact of local economic development actions on immigration across Mexican municipalities

Tiebout's “voting with the feet” proposition directs attention to the role of local authorities in delivering public services, and the implications of their decisions in people's choice of place of residence. Similarly, the bottom-up approach to economic development places a relevant role of local governments in promoting higher standards of living. By considering the latter, the former can be extended as citizens can choose a jurisdiction not only on the basis of a combination of taxes and public services but a broader mix of public goods. This paper analyses the effects of the fundamental features of the bottom-up or local economic development (LED) approach on population mobility among Mexican municipalities. This study finds significant evidence of a positive impact of LED elements on immigration during the period between 1990 and 2005.