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Regional Income Distribution in Mexico: New Long-Term Evidence, 1895–2010

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  • José Aguilar-Retureta

Abstract

Recent studies in economic history have investigated long-term changes in regional income inequality in various countries after their domestic markets have been regionally integrated. But this literature has focused mainly on developed economies. Evidence is needed from developing economies. This paper is the first investigation of Mexican regional income disparity over the long term, from the early stages of domestic market integration to the present day (1895–2010). The results show that, despite a persistent north-south income division and very low rank-income mobility, regional inequality has been N-shaped over the long term. This trend is closely correlated to the economic models adopted by Mexico since the late nineteenth century. Box-plot graphs and kernel densities suggest that the initial divergence was driven by rich states becoming richer and poor states becoming poorer, and the subsequent convergence by rich states’ incomes falling towards the national average and poor states’ incomes improving. Moran’s I coefficients show that the only statistically significant income cluster appearing over the entire period was the low income cluster formed by the southern regions. In other words, in Mexico, having rich neighbours does not bring a region prosperity.

Suggested Citation

  • José Aguilar-Retureta, 2016. "Regional Income Distribution in Mexico: New Long-Term Evidence, 1895–2010," Economic History of Developing Regions, Taylor & Francis Journals, vol. 31(2-3), pages 225-252, September.
  • Handle: RePEc:taf:rehdxx:v:31:y:2016:i:2-3:p:225-252
    DOI: 10.1080/20780389.2016.1175298
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    References listed on IDEAS

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    1. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634, March.
    2. Julio Mart�nez-Galarraga & Joan R. Ros�s & Daniel A. Tirado, 2015. "The Long-Term Patterns of Regional Income Inequality in Spain, 1860-2000," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 502-517, April.
    3. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237, March.
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    Cited by:

    1. Venera Timiryanova & Konstantin Grishin & Dina Krasnoselskaya, 2020. "Spatial Patterns of Production-Distribution-Consumption Cycle: The Specifics of Developing Russia," Economies, MDPI, vol. 8(4), pages 1-18, October.
    2. Kemeny, Thomas & Storper, Michael, 2020. "Superstar cities and left-behind places: disruptive innovation, labor demand, and interregional inequality," LSE Research Online Documents on Economics 103312, London School of Economics and Political Science, LSE Library.
    3. Lara, Jaime Lara & Gómez, Bernardo Garza & Barrón, Dania Monárrez & Zambrano , Emilio Mátar & García, Gustavo Vázquez, 2023. "Selective Migration and Economic Growth in México," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(1), pages 129-144, March.

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