The conditional convergence hypothesis in Ecuador: a cantonal level analysis

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Published: 2015-06-30
DOI: https://doi.org/10.17163/ret.n9.2015.01
Keywords:
Absolute convergence, relative convergence, regional development, Ecuador.

Main Article Content

Rodrigo Mendieta Muñoz

Abstract

The aim of this study is to test the relative convergence hypothesis in Ecuador at cantonal level, considering a set of explanatory variables. Following Barro and Sala-i-Martin (1991), a model of nonlinear least squares (NLMS) is estimated using cross-sectional data from 2007 to 2012. The main findings indicate absolute convergence rate of 1,37% per annum between municipalities. With the conditioning factors (illiteracy rate, percentage of households with electricity grid, the average number of children, agricultural production, manufacturing and remittances as a percentage of cantonal gross value added) the convergence rate is reduced to 1,12% annually, indicating that differences in these variables explain a considerable part of the slow territorial convergence in Ecuador.

Article Details

Issue
Vol. 5 No. 9 (2015): (January-June)
Section
Monographic section

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Author Biography

Rodrigo Mendieta Muñoz

Doctor en Ciencias Económicas y Administrativas. Subdecano y Coordinador del Grupo de Investigación en Economía Regional de la Facultad de Ciencias Económicas y Administrativas. Universidad de Cuenca.