The regional inequality of Mexican productive articulation: a spatial input-output perspective

This study measures the regional inequality embedded in Mexico's interregional productive articulation by combining the hypothetical extraction method with the spatial Gini decomposition, applied to Mexico's 2018 multi-state input-output matrix. Productive articulation is concentrated in the Central and Northern regions, while the Southern region remains structurally disconnected. Within this uneven geography, the capacity to supply intermediate inputs is more territorially concentrated than the capacity to consume them, generating supply-chain bottleneck risks. The regional disparities arise primarily from gaps between distant clusters of entities rather than between neighbours. This spatial pattern varies across sectoral categories, as services and technology-based manufacturing contribute significantly to regional inequality, whereas strengthening the primary sector and resource-based manufacturing may help narrow regional disparities. These findings are relevant to Mexico's current industrial policy agenda, offering insights into the design of instruments that strengthen productive linkages without deepening regional inequality.