Structural Interdependence and Regional Inequality in Peru: A Hypothetical Extraction Approach

Regional interdependence can be measured through different approaches. This paper applies a systemic analysis based on intersectoral linkages, using the hypothetical extraction method. To build a regional hierarchy of interdependence, each of Peru’s 26 regions is extracted one at a time. The analysis uses an interregional input-output matrix calibrated for 2022, with 101 productive activities and 26 regions. The results reveal a highly concentrated regional structure. Lima Metropolitan Region emerges as the main economic core, generating the largest backward, forward and total effects, followed by Callao, Ica, Arequipa and Cusco. In contrast, several Amazonian and Andean departments show weaker systemic impacts, reflecting limited integration into national production chains. The evidence points to a core-periphery pattern in which Lima and nearby coastal departments concentrate income, population, employment and productive linkages. These findings highlight the need for regional policies that reduce excessive dependence on Lima and strengthen endogenous development in peripheral territories.