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Convergence in the Southern Cone

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  • Víctor Elías
  • Rodrigo Fuentes

Abstract

The main objective of this paper is to analyze the degree of regional economic convergence in the Southern Cone, using regional data of Argentina and Chile during the 1960-1985 period. This study found a more rapid convergence in the case of Chile than in the case of Argentina (which could be due in part to the much higher degree of openness adopted by Chile during the second part of the period analyzed here). The homogeneization of the series of GDP between both countries using purchasing power parity exchange rate, and the consideration of the behavior of the GDP per unit of labor input instead of the GDP per capita, improves substantially the fit of the Barro and Sala-i-Martin equation, when pooling the data of both countries. The "exogenous" variables used in the conditional convergence model increase substantially the estimates of the speed of convergence from 0. 71 percent up to 2 percent.

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Bibliographic Info

Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

Volume (Year): 25 (1998)
Issue (Month): 2 Year 1998 (December)
Pages: 179-189

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Handle: RePEc:udc:esteco:v:25:y:1998:i:2:p:179-189

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Web page: http://www.econ.uchile.cl/
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Keywords: Convergence; Southern Cone;

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Cited by:
  1. Capello, Marcelo & Figueras, Alberto & Freille, Sebastian & Moncarz, Pedro, 2013. "The role of federal transfers in regional convergence in human development indicators in Argentina," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 27, pages 33-63.
  2. Adriana Marina, 2000. "Economic convergence of the first and second moment in the provinces of Argentina," Estudios de Economia, University of Chile, Department of Economics, vol. 27(2 Year 20), pages 259-277, December.
  3. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2012. "Desempeño Económico Regional: Un Análisis Dinámico Para El Caso Chileno En El Período 1960-2009
    [Regional Economic Performance: A Dynamic Analysis For The Chilean Case In The Period 1960-2009]
    ," MPRA Paper 39182, University Library of Munich, Germany.
  4. Catriona Purfield, 2006. "Mind the Gap," IMF Working Papers 06/103, International Monetary Fund.

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