Regional income inequality in Mexico, 1895-2010

[eng] The motivation of this dissertation is multi-fold. Firstly, regional income disparity is widely considered to be a central concern among economists and policy makers. This responds to many facts. Usually, when regional specialisation takes place, only a few regions are able to attract modern i...

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Detalles Bibliográficos
Autor: Aguilar Retureta, José
Tipo de recurso: tesis doctoral
Estado:Versión publicada
Fecha de publicación:2016
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/112093
Acceso en línea:https://hdl.handle.net/2445/112093
http://hdl.handle.net/10803/403709
Access Level:acceso abierto
Palabra clave:Economia regional
Regional economics
Descripción
Sumario:[eng] The motivation of this dissertation is multi-fold. Firstly, regional income disparity is widely considered to be a central concern among economists and policy makers. This responds to many facts. Usually, when regional specialisation takes place, only a few regions are able to attract modern industrial activity and high value-added services, causing an increase in regional inequality over the long term, as these activities generally enjoy increasing returns (which, in turn, makes this pattern very difficult to be reversed). Moreover, regional inequality is, all things being equal, highly correlated to inequality among individuals, which is also a very relevant issue for economists and policy makers. Lastly, regional inequality has high political relevance because it may be a source of political instability, which can result in social and economic crisis. Therefore, there is a great deal of scientific literature concerned with the evolution and causes of regional inequality. The interest in regional inequality is shared by the Economic History literature, especially by that based on quantitative methods, which has developed a number of innovative research strategies to analyse the main forces behind the long-term evolution of regional inequality. However, this line of research has mainly focused on high-income industrialised economies, such as the US and some Western European countries, and there is still a significant gap in our knowledge of the long-term trends of regional inequality in low and middle-income economies. This leads to the second motivation of this project. Even though there has been some recent work on long-term regional inequality in middle and low-income economies, this is still a rather understudied field, where new hypotheses and interpretations –different from those developed for the industrialised countries– need to be developed. For instance, in developing countries, industrial location and agglomeration economies may not have had such a central role as drivers of regional income disparities. On the contrary, the influence of institutions and the location of natural resources may be much stronger. Likewise, dual economic structures (i.e., the coexistence of modern and traditional economic sectors) are much more common in developing countries than in industrialized economies. All this may make it necessary to adopt different research strategies in the analysis of regional disparities in developing countries. The study of Mexican regional inequality is representative of middle-income economies, where economic growth has had different roots and dynamics than in industrialised countries. In addition, Mexico has some characteristics that make it a particularly interesting case study. While the northern regions in Mexico share a huge border with the biggest world market, the US, the southern ones limit with one of the poorest region in the world, Central America. Also, it is a case in which very different forces have affected the long-term evolution of regional income inequality, such as factor endowments, factor mobility, natural resources, structural change, market potential and regional and development policies, which have affected regional disparities with varying intensity across the different periods of the late modern history of Mexico. Finally, the last motivation of this research lies beyond the Economic History frontiers. Mexico is living a period of increasing regional divergence, according to different indicators. Although this problem has been object of harsh public debate between the mid 20th century and the present (actually, the current federal government has announced a huge program to encourage economic growth in the poorest regions) almost no progress has been reached. According to the National Institute of Statistics and Geography (INEGI), in 2010 the GDP per capita of the richest state was 5.2 times as high as in the poorest state. The National Council for Evaluation of Social Development Policy (CONEVAL) estimates that 43 per cent of the total population living in extreme poverty in 2010 were located in 4 southern states. These figures stand out globally, not only in comparison to high-income countries but also to most middle and low-incomes economies. In fact, the ECLAC (2014: 73) has recently pointed out that Mexico has the second highest income ratio between the richest and the poorest regions among Latin American countries, only surpassed by Ecuador. In this regard, although the Mexican economy has a deep-rooted and historically persistent high regional inequality, the literature on regional disparities has focused mainly on the period from the 1980s and the end of ISI policies. By contrast, very little research has been done for the State-led industrialisation period (1930-1980), and none for the previous years of the First Globalisation. This dissertation aims to provide new quantitative evidence on the long-term evolution of Mexican regional income inequality, covering the period from 1895 to 2010. With this research, we hope to contribute both to the literature on Mexico and to the international debate on the main forces that explain the historical evolution of regional inequality.