The unequal income distribution generated by Mexican exports

Abstract

This research examines income distribution inequality generated by production aimed atexternal and internal markets, adopting a structural and spatial perspective. Themethodology employs an interregional input–output model enhanced with satellitevectors for labour compensation and surplus alongside regional inequality indicators.The findings highlight the importance of industrial policies that promote productivedevelopment and address inequalities. Domestic market production shows greatereconomic growth potential, as the income it generates is more evenly distributedacross federal entities and more favourable to workers. A regional-scope developmentstrategy should aim for balanced growth driven by both domestic and external demand.