Agglomeration externalities in Ecuador. Do urbanisation and tertiarisation matter?

Carolina Guevara-Rosero, Stephane Riou () and Corinne Autant-Bernard

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Abstract: The paper investigates whether the tertiarisation and the rapid urbanisation faced by developing countries favour agglomeration economies. Focusing on Ecuadorian cantons, a productivity equation is estimated using the GMM model with instruments controlling for endogeneity. The varying impact of industrial concentration, diversity, competition and density across industries is investigated and for the first time, the implication of the level of urbanisation on agglomeration externalities is studied. Stronger effects are found for services. The threshold of urbanisation at which diversity, density and competition agglomeration externalities all generate positive effects was 33% while they seem challenged by congestion in highly urbanised cantons.

Keywords: Agglomeration externalities; productivity; urbanisation; tertiarisation (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-ure
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01872922v2
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Agglomeration externalities in Ecuador. Do urbanisation and tertiarisation matter? (2019)
Working Paper: Agglomeration externalities in Ecuador. Do urbanisation and tertiarisation matter? (2018)
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