The structural reforms implemented in the late 1980s and early 1990s transformed the regional characteristics of the Mexican economy and led to a redistribution and concentration of economic activities in some favored regions. This study analyzes the structural transformations of the Mexican economy after the period of structural reforms to highlight the internal and external adjustments that took place between 1993 and 2003, and their effects on regional income distribution. Two regionalized social accounting matrices (RSAMs) were constructed with households grouped according to geo-political area of residence to function as databases for the inter-temporal comparison of the economic structure, output and income multipliers, and the development of relative distribution measures. The analysis contributes to the understanding of the complex phenomenon of regional income distribution in Mexico by providing evidence that the internal dynamics of the Mexican economy work against the states with lower levels of per capita income, but that, contrary to what is found in the literature, external intervening factors contribute to the reduction in the dispersion of regional income per capita during the period.