Agglomeration externalities in Ecuador. Do urbanisation and tertiarisation matter?
Carolina Guevara (),
Stephane Riou () and
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Carolina Guevara: Departamento de Matematica, Facultad de Ciencias, Escuela Politecnica Nacional, Ecuador
No 1818, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon
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; Latin America (search for similar items in EconPapers)
JEL-codes: O54 L80 O18 L60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
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Journal Article: Agglomeration externalities in Ecuador: do urbanization and tertiarization matter? (2019)
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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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1818
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