Cantonal Convergence in Ecuador: A Spatial Econometric Perspective

Rodrigo Mendieta Muñoz and Nicola Pontarollo

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Subnational convergence; Spatial Econometrics; Convergence Clubs. (search for similar items in EconPapers)
JEL-codes: C21 O47 R11 (search for similar items in EconPapers)
Date: 2015-12-16
New Economics Papers: this item is included in nep-agr, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://mpra.ub.uni-muenchen.de/68426/14/MPRA_paper_68426.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/72285/21/MPRA_paper_72285.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68399

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