The Inequality Footprint of Final Goods Trade: The case of the Mexican economy

The Inequality Footprint of Final Goods Trade: The case of the Mexican economy

  • Jorge Ignacio Villaseñor Becerra ,

Keywords:

trade, income distribution, inequality footprint, Mexico

Abstract

The relationship between trade and inequality has been widely studied, however, recently, the concept of the “footprint of inequality” has emerged to measure how, through international trade, the final demand for goods of a country requires the inequality of other countries from which it imports final goods. In this work, using input-output analysis techniques, Lorenz curves are drawn and Gini coefficients associated with trade in final goods in Mexico are calculated, with the intention of contributing to the debate on the relationship between trade and income distribution. , through the use of the concept “footprint of inequality”. The results obtained show that, between 1995 and 2011, the inequality footprint of final demand in Mexico is much smaller than the inequality footprint of final demand in the rest of the world. However, exports of Mexican final goods have a lower inequality footprint than imports of Mexican final goods. It is also observed that most of the inequality footprint of Mexican trade is explained by the fact that, between levels of training, there is a more homogeneous distribution of work compensation in exports of final Mexican goods than in imports of goods end. The work compensation contained in the imports of final goods is highly concentrated in payments to workers with medium and high training. Mexican final goods exports have a lower inequality footprint than Mexican final goods imports. It is also observed that most of the inequality footprint of Mexican trade is explained by the fact that, between levels of training, there is a more homogeneous distribution of work compensation in exports of final Mexican goods than in imports of goods end. The work compensation contained in the imports of final goods is highly concentrated in payments to workers with medium and high training. Mexican final goods exports have a lower inequality footprint than Mexican final goods imports. It is also observed that most of the inequality footprint of Mexican trade is explained by the fact that, between levels of training, there is a more homogeneous distribution of work compensation in exports of final Mexican goods than in imports of goods end. The work compensation contained in the imports of final goods is highly concentrated in payments to workers with medium and high training. Between levels of training, there is a more homogeneous distribution of work compensation in exports of Mexican final goods than in imports of final goods. The work compensation contained in the imports of final goods is highly concentrated in payments to workers with medium and high training. Between levels of training, there is a more homogeneous distribution of work compensation in exports of Mexican final goods than in imports of final goods. The work compensation contained in the imports of final goods is highly concentrated in payments to workers with medium and high training.

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