Structural Interdependence and Regional Inequality in Peru: A Hypothetical Extraction Approach

Wallace Patrick Santos de Farias Souza, Fernando Perobelli and Eduardo Haddad
Additional contact information
Wallace Patrick Santos de Farias Souza: Universidade Federal da Paraíba

No 12-2026, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: Regional interdependence can be measured through different approaches. This paper applies a systemic analysis based on intersectoral linkages, using the hypothetical extraction method. To build a regional hierarchy of interdependence, each of Peru’s 26 regions is extracted one at a time. The analysis uses an interregional input-output matrix calibrated for 2022, with 101 productive activities and 26 regions. The results reveal a highly concentrated regional structure. Lima Metropolitan Region emerges as the main economic core, generating the largest backward, forward and total effects, followed by Callao, Ica, Arequipa and Cusco. In contrast, several Amazonian and Andean departments show weaker systemic impacts, reflecting limited integration into national production chains. The evidence points to a core-periphery pattern in which Lima and nearby coastal departments concentrate income, population, employment and productive linkages. These findings highlight the need for regional policies that reduce excessive dependence on Lima and strengthen endogenous development in peripheral territories.

Keywords: regional interdependence; hypothetical extraction; input-output analysis; regional inequality; Peru (search for similar items in EconPapers)
JEL-codes: O18 R11 R15 (search for similar items in EconPapers)
Pages: 24
Date: 2026
New Economics Papers: this item is included in nep-geo
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.usp.br/nereus/wp-content/uploads/TD_NEREUS_12_2026.pdf
ris

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:nereus:023543

Access Statistics for this paper

More papers in TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS) Contact information at EDIRC.
Bibliographic data for series maintained by Inacio F Araujo ().