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Income inequality and economic complexity: Evidence from Mexican states

Author

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  • Manuel Gómez‐Zaldívar
  • María Isabel Osorio‐Caballero
  • Edgar Juan Saucedo‐Acosta

Abstract

We study the relationship between income inequality and economic complexity in Mexican states between 2004 and 2019. The results show that economic complexity is statistically related to inequality; that is, states with more diversified and sophisticated economic structures (more complex economies) tend to have fairer income distribution. Furthermore, there is some evidence of a local spatial spillover effect of economic complexity; in short, a state's level of income inequality is not only related to its own level of economic complexity but also its neighbours' level. Employing panel methods, our estimations use control variables that other similar studies have considered important, such as gross domestic product, population, education, corruption control, government effectiveness, voice and accountability, and rule of law. The results are relevant for policymakers in order to adapt policies to reduce inequality. Se estudió la relación entre la desigualdad de los ingresos y la complejidad económica en los estados mexicanos entre 2004 y 2019. Los resultados muestran que la complejidad económica está estadísticamente relacionada con la desigualdad, es decir, que los estados con estructuras económicas más diversificadas y sofisticadas (economías más complejas) tienden a tener una distribución de la renta más justa. Además, existen indicios de un efecto de spillover espacial local de la complejidad económica que, en resumen, indica que el nivel de desigualdad de ingresos de un estado no sólo está relacionado con su propio nivel de complejidad económica, sino también con el de sus vecinos. Se emplearon métodos de panel en los que las estimaciones utilizaron variables de control que otros estudios similares han considerado importantes, como el producto interior bruto, la población, la educación, el control de la corrupción, la eficacia del gobierno, la voz y la rendición de cuentas, y el estado de derecho. Los resultados son relevantes para los responsables políticos a la hora de adaptar las políticas con vistas a reducir la desigualdad. 本稿では、2004~2019年までのメキシコの州における所得格差と経済複雑性の関連性を検討する。結果から、経済複雑性と不平等とが統計的に関連していることが示された。すなわち、経済構造がより多様で洗練された州(経済複雑性が高い)では、より公平な所得分配が行われる傾向がみられる。さらに、経済複雑性の局所的な空間的波及効果のエビデンスが認められる。つまり、ある州の所得格差のレベルは、その州の経済複雑性のレベルだけでなく、近隣州のレベルとも関連している。パネル方式を採用して行った我々の推定では、国内総生産、人口、教育、汚職防止、政府の実効力、発言力と説明責任、法の支配など、他の同様の研究が重要と考えてきた制御変数を使用している。結果は、政策立案者が不平等を減らすために政策を調整するのに重要なものである。

Suggested Citation

  • Manuel Gómez‐Zaldívar & María Isabel Osorio‐Caballero & Edgar Juan Saucedo‐Acosta, 2022. "Income inequality and economic complexity: Evidence from Mexican states," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(6), pages 344-363, December.
  • Handle: RePEc:bla:rgscpp:v:14:y:2022:i:6:p:344-363
    DOI: 10.1111/rsp3.12580
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    References listed on IDEAS

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