IDEAS home Printed from https://ideas.repec.org/a/rjr/romjef/vy2018i1p124-139.html
   My bibliography  Save this article

Territorial Growth in Ecuador: The Role of Economic Sectors

Author

Listed:
  • Rodrigo MENDIETA MUÑOZ

    (GIER, University of Cuenca, Av. 12 de Abril y Av. Loja, 01.01.168 Cuenca, Ecuador.)

  • Nicola PONTAROLLO

    (Joint Research Centre European Commission, Via Enrico Fermi 2749, I-21027 Ispra, Italy.)

Abstract

Ecuador is a developing country characterized by severe territorial disparities reflected in a heterogeneous economic and social geography that risk to undermine a future balanced development. The paper analyses for the first time the impact of main economic sectors on sub-national growth process in the context of the “Changing Productive Matrix” policy objective, which aims to achieve productive diversification based on adding value through de-concentration of production from the existing poles to the whole territory. The estimation is performed using new data provided by Central Bank of Ecuador for the period 2007-2014 through a panel econometric technique. The results prove that, despite the strategy aimed at changing the productive matrix pushed by the government, this process is far to be completed. In particular, the country is too much focused on low productive sectors which depress economic growth and the manufacture and financial services sectors are too much concentrated in few areas, preventing their possible positive effect into the whole economy.

Suggested Citation

  • Rodrigo MENDIETA MUÑOZ & Nicola PONTAROLLO, 2018. "Territorial Growth in Ecuador: The Role of Economic Sectors," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 124-139, December.
  • Handle: RePEc:rjr:romjef:v::y:2018:i:1:p:124-139
    as

    Download full text from publisher

    File URL: http://www.ipe.ro/rjef/rjef1_18/rjef1_2018p124-139.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Eaton, Jonathan & Eckstein, Zvi, 1997. "Cities and growth: Theory and evidence from France and Japan," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 443-474, August.
    2. Stephen Gibbons & Henry G. Overman, 2012. "Mostly Pointless Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 172-191, May.
    3. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
    4. Fabrizio Barca & Philip McCann & Andrés Rodríguez‐Pose, 2012. "The Case For Regional Development Intervention: Place‐Based Versus Place‐Neutral Approaches," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 134-152, February.
    5. Luisa Corrado & Bernard Fingleton, 2012. "Where Is The Economics In Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 210-239, May.
    6. Bernard Fingleton & Enrique López‐Bazo, 2006. "Empirical growth models with spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 177-198, June.
    7. Sandy Dall’erba & Julie Le Gallo, 2007. "The Impact of EU Regional Support on Growth and Employment," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(7-8), pages 324-340, September.
    8. Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989–1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 219-244, June.
    9. Carolina Guevara & Stéphane Riou & Corinne Autant-Bernard, 2015. "Agglomeration externalities and urbanization in Ecuador," Post-Print halshs-01212174, HAL.
    10. Emanuela Raffinetti & Elena Siletti & Achille Vernizzi, 2015. "On the Gini coefficient normalization when attributes with negative values are considered," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 24(3), pages 507-521, September.
    11. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    12. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
    13. Monica Raileanu Szeles & Rodrigo Mendieta Muñoz, 2016. "Analyzing the Regional Economic Convergence in Ecuador. Insights from Parametric and Nonparametric Models," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 43-65, June.
    14. Daniel P. McMillen, 2003. "Spatial Autocorrelation Or Model Misspecification?," International Regional Science Review, , vol. 26(2), pages 208-217, April.
    15. Andrew Henley, 2005. "On regional growth convergence in Great Britain," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1245-1260.
    16. Karen Dunnell, 2009. "National Statistician’s article: measuring regional economic performance," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 3(1), pages 18-30, January.
    17. Mendieta Muñoz, Rodrigo & Pontarollo, Nicola, 2015. "Cantonal Convergence in Ecuador: A Spatial Econometric Perspective," MPRA Paper 68399, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Otilia Vanessa Cordero-Ahiman & Jorge Leonardo Vanegas & Pablo Beltrán-Romero & María Elena Quinde-Lituma, 2020. "Determinants of Food Insecurity in Rural Households: The Case of the Paute River Basin of Azuay Province, Ecuador," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-18, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    2. Vicente Rios & Pedro Pascual Arzoz & BelÉn iraizoz Apezteguia, 2016. "Development Differentials and Interaction Effects in the European Regions: A Study Based on the Regional Lisbon Index," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 347-364, July.
    3. Guilherme Resende & Alexandre Carvalho & Patrícia Sakowski & Túlio Cravo, 2016. "Evaluating multiple spatial dimensions of economic growth in Brazil using spatial panel data models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 1-31, January.
    4. Sébastien BOURDIN, 2013. "Une Mesure Spatiale Locale De La Sigma-Convergence Pour Evaluer Les Disparites Regionales Dans L’Union Europeenne," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 37, pages 179-196.
    5. Roberta Capello & Camilla Lenzi, 2016. "Innovation modes and entrepreneurial behavioral characteristics in regional growth," Small Business Economics, Springer, vol. 47(4), pages 875-893, December.
    6. Oshan, Taylor M., 2020. "The spatial structure debate in spatial interaction modeling: 50 years on," OSF Preprints 42vxn, Center for Open Science.
    7. Pontarollo, Nicola & Mendieta, Rodrigo & Ontaneda, Diego, 2019. "Canton growth in Ecuador and the role of spatial heterogeneity," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. Cécile BATISSE & Mary-Françoise RENARD & Nasser ARY TANIMOUNE, 2013. "Foreign Direct Investment across China: what should we learn from spatial dependences?," Working Papers 201312, CERDI.
    9. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    10. repec:esx:essedp:729 is not listed on IDEAS
    11. Matthew Gnagey & Therese Grijalva, 2018. "The impact of trails on property values: a spatial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 73-97, January.
    12. Carlo Ciccarelli & Stefano Fachin, 2017. "Regional growth with spatial dependence: A case study on early Italian industrialization," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 675-695, November.
    13. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
    14. Cem Ertur & Julie Le Gallo, 2008. "Regional Growth and Convergence: Heterogenous reaction versus interaction in spatial econometric approaches," Working Papers hal-00463274, HAL.
    15. Orea, Luis & Álvarez, Inmaculada C., 2019. "Spatial Production Economics," Efficiency Series Papers 2019/06, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    16. Julián Ramajo & José Manuel Cordero & Miguel Ángel Márquez, 2017. "European regional efficiency and geographical externalities: a spatial nonparametric frontier analysis," Journal of Geographical Systems, Springer, vol. 19(4), pages 319-348, October.
    17. Nicola Pontarollo, 2013. "Structural change, productivity growth and Structural Funds in European regions," ERSA conference papers ersa13p747, European Regional Science Association.
    18. Guilherme Mendes Resende & Tulio A. Cravo, 2014. "What about regions in regional science? A convergence exercise using different geographic scales of European Union," Economics Bulletin, AccessEcon, vol. 34(3), pages 1381-1395.
    19. Klein, Alexander & Leunig, Tim, 2013. "Gibrat's Law and the British industrial revolution," Economic History Working Papers 58363, London School of Economics and Political Science, Department of Economic History.
    20. Sandy Fréret & Denis Maguain, 2017. "The effects of agglomeration on tax competition: evidence from a two-regime spatial panel model on French data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1100-1140, December.
    21. Vicente Rios Ibañez, 2014. "What drives regional unemployment convergence?," ERSA conference papers ersa14p924, European Regional Science Association.

    More about this item

    Keywords

    sub-national growth; Ecuador; panel spatial econometrics; economic sectors;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rjr:romjef:v::y:2018:i:1:p:124-139. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ipacaro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/ipacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.