Sectoral Regional Growth and Convergence in Ecuador: An Analysis of the Intra-Distributive Dynamics of Productivity (original) (raw)

Application of the Kernel Density Function for the Analysis of Regional Growth and Convergence in the Service Sector through Productivity

Mathematics

The aim of this research work is to analyze growth and convergence processes in the service sector and its large groups, market, and non-market services, at the regional level in Ecuador by taking the labor productivity variable as a reference. The methodology used is an analysis of distributive dynamics of the data, applying the non-parametric method of Kernel density functions from a mathematical economics approach. The results obtained show that the service sector has non-alarming levels of inequality, its trend over time is increasing. When disaggregating the data, it was observed that non-market services show a rapid growth in inequality. In contrast, market services show greater stability during the period analyzed. Regarding intra-distribution dynamics for the service sector and its subsectors, in the long term, poor regions improve, while rich regions deteriorate. However, deterioration of advanced regions is less intense in non-market services.

Territorial Growth in Ecuador: The Role of Economic Sectors

Ecuador is a developing country characterised by severe territorial disparities, reflected in a heterogeneous economic and social geography that risk to undermine a future balanced development. The paper analyses for the first time the impact of main economic sectors on subnational growth process in the context of the “Changing Productive Matrix” policy objective, which aims to achieve productive diversification based on adding value through a deconcentration the production from the existing poles to the whole territory. The estimation is performed using new data provided by Central Bank of Ecuador for period 2007-2014 through a panel econometric technique. The results prove that, despite the strategy aimed at changing the productive matrix pushed by the government, this process is far to be completed. In particular the country is too much focussed into low productive sectors which depress economic growth and the manufacture and financial services sectors are too much concentrated in few areas, preventing their possible positive effect into the whole economy.

Spatial Economic Convergence and Public Expenditure in Ecuador

Symmetry

In Ecuador, the sectorial policies, public policies and state investment, increase the presence of polarized and polycentric territories with very heterogeneous characteristics and with asymmetric levels of economic growth and development. The explanation for the unequal growth of regions in Ecuador is determined by the existence of different types of asymmetries; that determine economic dynamics and non-convergent development processes. The aim of this research is to determine the effect of an increase in public spending on physical infrastructure and education, on the improvement of productive conditions and on the process of reducing disparities (convergence) at the regional level in Ecuador. To do this, the hypothesis of beta convergence will be tested, which is conditioned by the proxy variables of public expenditure or investment in infrastructure and education at provincial level, for the 2001–2015 period. The results show the existence of a "slight" process of conv...

Regional Growth Convergence in Colombia Using Social Indicators

2009

This paper investigates convergence in social indicators among Colombian departments from 1973 to 2005. We use census data and apply both the regression approach and the distributional approach (univariate and bivariate kernel density estimators). Using literacy rate as a proxy for education, we find convergence between 1973 and 2005, but persistence in the distribution between 1975 and 2000, when we use the infant survival rate and life expectancy at birth as proxies for health. Additionally, using data from Demographic and Health Surveys, we find convergence in the rate of children that are well-nourished between 1995 and 2005.

Growth and Convergence Profiles in the Spanish Provinces (1965-1997)*

Journal of Regional Science, 2005

Economic performance in Spanish provinces has led to a considerable improvement in standard of living of their populations. Intense capital accumulation since the 1950s played a key roll in this process. Provincial inequalities may increase or decrease as a result of this growth pattern. This study analyzes the evolution of the disparities by means of distribution dynamics techniques. It explicitly considers economic size of each province and whether spatial spillovers exist. Results indicate that the convergence process has been especially intense for labor productivity, total factor productivity, and capital intensity, while for per capita income the patterns of convergence are less marked. When we weight our analysis according to economic size of each province, our conclusions do not hold. However, when we take geographic location into account, we find support for our conclusions.

Growth and Convergence Profiles in the Spanish Provinces (1965-1997&rpar

Journal of Regional Science

Economic performance in Spanish provinces has led to a considerable improvement in standard of living of their populations. Intense capital accumulation since the 1950s played a key roll in this process. Provincial inequalities may increase or decrease as a result of this growth pattern. This study analyzes the evolution of the disparities by means of distribution dynamics techniques. It explicitly considers economic size of each province and whether spatial spillovers exist. Results indicate that the convergence process has been especially intense for labor productivity, total factor productivity, and capital intensity, while for per capita income the patterns of convergence are less marked. When we weight our analysis according to economic size of each province, our conclusions do not hold. However, when we take geographic location into account, we find support for our conclusions. Copyright Blackwell Publishers, 2005

Wage inequality and economic growth in Mexican regions

2012

Only a few studies have analysed the relationship between intraregional inequality and growth, although several studies have measured inequality at the regional level. The objective of this paper is to analyse the relationship between income (wage) inequality and economic growth in different regions of Mexico. We also try to identify factors that explain the variation of intra-regional inequality across Mexican regions and over time. Using macroeconomic databases and p ublicly available microdata, we apply techniques used in the fields of statistics and econometrics to obtain robust evidence on the relationship between growth and inequality. Our aim is to provide policy recommendations to support the design and implementation of growth-promoting measures thatavoid the exclusion of certain social groups. This paper provides reasons to use a spatial approach and an analysis of particular regions to avoid «one size fits all» policy recommendations.

Explaining the regional economic heterogeneity in Ecuador

Bulletin of the Transilvania University of Braşov, Series V: Economic Sciences, 2015

This paper aims to present the economic heterogeneity of Ecuador’s regions using a descriptive analysis, and also to explain its main causes and implications. In comparison to the European Union, Ecuador exhibits a much higher degree of economic heterogeneity within regions and provinces. We relate this pattern to the dynamics of the economic structure, and we also highlight the progress done by now in enhancing regional convergence in Ecuador. The implications of the regional economic heterogeneity are important for the design of effective governmental policies.

Cantonal convergence in Ecuador: A spatial econometric perspective

Journal of Applied Economic Sciences, 2015

The paper analyses the convergence process of Ecuadorian cantons during the period 2007-2012 accounting for the role of spatial spillovers through spatial econometric tool. The advantage of this technique is to provide a reliable estimation because it takes into account the spatial interaction in the territory. In addition, it allows identifying clusters of cantons characterised by similar spatial patterns that can be interpreted as convergence clubs because they represent areas with similar initial conditions in the “basin of attraction” that, according to economic theory, converge to a common steady state equilibrium. The results highlight that a convergence process is present, but it involves the cluster of most developed cantons. This opens various policy implications related to i) the capacity of cantons to take advantage from the positive dynamics of neighbours, ii) the persistence of development in some circumscribed areas, and iii) the spatial unbalanced development.