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Convergence in the Southern Cone


  • Víctor Elías
  • Rodrigo Fuentes


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.

Suggested Citation

  • Víctor Elías & Rodrigo Fuentes, 1998. "Convergence in the Southern Cone," Estudios de Economia, University of Chile, Department of Economics, vol. 25(2 Year 19), pages 179-189, December.
  • Handle: RePEc:udc:esteco:v:25:y:1998:i:2:p:179-189

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    References listed on IDEAS

    1. Klette, Tor Jakob & Griliches, Zvi, 1996. "The Inconsistency of Common Scale Estimators When Output Prices Are Unobserved and Endogenous," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(4), pages 343-361, July-Aug..
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    5. Zvi Griliches, 1958. "Research Costs and Social Returns: Hybrid Corn and Related Innovations," Journal of Political Economy, University of Chicago Press, vol. 66, pages 419-419.
    6. Bronwyn H. Hall & Robert E. Hall, 1993. "The Value and Performance of U.S. Corporations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1), pages 1-50.
    7. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 531-542.
    8. Tor Jakob Klette, 1994. "R&D, Scope Economies and Company Structure: A "Not-so-Fixed Effect" Model of Plant Performance," Discussion Papers 120, Statistics Norway, Research Department.
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    Cited by:

    1. Catriona Purfield, 2006. "Mind the Gap—Is Economic Growth in India Leaving Some States Behind?," IMF Working Papers 06/103, International Monetary Fund.
    2. Juan Gabriel Brida & Silvia London & Mara Rojas, 2013. "Desempeño económico regional: un análisis dinámico para el caso chileno en el período 1960-2009," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, November.
    3. 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 - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 27, pages 33-63.
    4. 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.

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