INEQUALITY OF INCOME AND ITS IMPACT ON ECONOMIC GROWTH BY STATE IN MEXICO

Abstract

The aim of this paper is to analyze the effect of income inequality on economic growth by state in Mexico. For this, a brief literature review is made, a descriptive analysis of the variables used is performed and an econometric model of panel data is applied. Variables such as the Gross Domestic Product per capita, school enrollment, gross fixed capital
formation and the Gini coefficient by federal entity are used. The results of the model indicate that the increase in inequality generates a negative impact on economic growth.