IDEAS home Printed from https://ideas.repec.org/p/jau/wpaper/2020-01.html
   My bibliography  Save this paper

Weighted convergence in Colombian departments: The role of geography and demography

Author

Listed:
  • Jesús Peiró-Palomino

    (INTECO and Department of Economic Structure, Universitat de València, Spain)

  • William Orlando Prieto-Bustos

    (Facultad de Ciencias Económicas y Administrativas, Universidad Católica de Colombia, Bogotá, Colombia)

  • Emili Tortosa-Ausina

    (IVIE and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

We analyze per capita GDP convergence among Colombian departments between 2000 and 2016 using the distribution dynamics approach. Compared with previous studies, we provide a more complete view by including some additional information such as the asymptotic half-life of convergence, mobility indices and the continuous version of the ergodic distributions. In addition, we also extend the analysis to evaluate whether patterns could differ if weighted by either the population living in each department or the size of their economies, together with the existence and magnitude of spatial spillovers. The unweighted, unconditional analysis corroborates and supplements previous findings, especially those indicating that convergence patterns differ strongly under either pre-2008 or post- 2008 trends. Both the weighted and space-conditioned analyses indicate that convergence could be much faster when these factors are introduced in the analysis. Implications are especially relevant when weighting by population, since results suggest that the number of people escaping from relative poverty would be much higher than the figure predicted by the unweighted analysis.

Suggested Citation

  • Jesús Peiró-Palomino & William Orlando Prieto-Bustos & Emili Tortosa-Ausina, 2020. "Weighted convergence in Colombian departments: The role of geography and demography," Working Papers 2020/01, Economics Department, Universitat Jaume I, Castellón (Spain).
  • Handle: RePEc:jau:wpaper:2020/01
    as

    Download full text from publisher

    File URL: http://www.doctreballeco.uji.es/wpficheros/Peiro_et_al_01_2020.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter C. B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Econometrica, Econometric Society, vol. 75(6), pages 1771-1855, November.
    2. Bonet-Morón, Jaime Alfredo & Meisel-Roca, Adolfo, 2001. "La convergencia regional en Colombia : una visión de largo plazo, 1926-1995," Chapters, in: Meisel-Roca, Adolfo (ed.), Regiones, ciudades y crecimiento económico en Colombia, chapter 1, pages 11-56, Banco de la Republica de Colombia.
    3. Luis Armando Galvis & Adolfo Meisel Roca, 2010. "Fondo de Compensación Regional: Igualdad de oportunidades para la periferia colombiana," Documentos de trabajo sobre Economía Regional y Urbana 122, Banco de la Republica de Colombia.
    4. T. Paul Schultz, 1998. "Inequality in the distribution of personal income in the world: How it is changing and why," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(3), pages 307-344.
    5. Galvis-Aponte, Luis Armando & Meisel-Roca, Adolfo, 2011. "Persistencia de las desigualdades regionales en Colombia : un análisis espacial," Chapters, in: Bonilla-Mejía, Leonardo (ed.), Dimensión regional de las desigualdades en Colombia, chapter 1, pages 3-32, Banco de la Republica de Colombia.
    6. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    7. Quah, Danny T, 1996. "Aggregate and Regional Disaggregate Fluctuations," Empirical Economics, Springer, vol. 21(1), pages 137-159.
    8. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-1055, July.
    9. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
    10. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    11. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
    12. Manfred Fischer & Peter Stumpner, 2008. "Income distribution dynamics and cross-region convergence in Europe," Journal of Geographical Systems, Springer, vol. 10(2), pages 109-139, June.
    13. Gerke J. Hoogstra & Jouke van Dijk & Raymond J. G. M. Florax, 2017. "Do jobs follow people or people follow jobs? A meta-analysis of Carlino–Mills studies," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(4), pages 357-378, October.
    14. Galvis-Aponte Luis Armando & Hahn-De-Castro Lucas Wilfried, 2016. "Crecimiento municipal en Colombia: el papel de las externalidades espaciales, el capital humano y el capital físico," Revista Sociedad y Economía, Universidad del Valle, CIDSE, issue 31, pages 11-286, May.
    15. Redding, Stephen, 2002. "Specialization dynamics," Journal of International Economics, Elsevier, vol. 58(2), pages 299-334, December.
    16. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    17. Thomas Farole & Andrés Rodríguez‐Pose & Michael Storper, 2011. "Cohesion Policy in the European Union: Growth, Geography, Institutions," Journal of Common Market Studies, Wiley Blackwell, vol. 49(5), pages 1089-1111, September.
    18. M.J. Herrerías & Vicente Orts & Emili Tortosa‐Ausina, 2011. "Weighted convergence and regional clusters across China," Papers in Regional Science, Wiley Blackwell, vol. 90(4), pages 703-734, November.
    19. Sakamoto, Hiroshi & Islam, Nazrul, 2008. "Convergence across Chinese provinces: An analysis using Markov transition matrix," China Economic Review, Elsevier, vol. 19(1), pages 66-79, March.
    20. Vicente Royuela & Gustavo Adolfo Garc�a, 2015. "Economic and Social Convergence in Colombia," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 219-239, February.
    21. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, June.
    22. Galvis-Aponte, Luis Armando & Meisel-Roca, Adolfo, 2001. "El crecimiento económico de las ciudades colombianas y sus determinantes, 1973-1998," Chapters, in: Meisel-Roca, Adolfo (ed.), Regiones, ciudades y crecimiento económico en Colombia, chapter 2, pages 57-90, Banco de la Republica de Colombia.
    23. Laura Ardila Rueda, 2004. "Gasto público y convergencia regional en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 22(45), pages 222-268, June.
    24. Peter C. B. Phillips & Donggyu Sul, 2009. "Economic transition and growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1153-1185.
    25. Ricardo Rocha & Alejandro Vivas, 1998. "Crecimiento regional en Colombia: ¿Persiste la desigualdad?," Revista de Economía del Rosario, Universidad del Rosario, January.
    26. James P. LeSage, 2014. "What Regional Scientists Need to Know about Spatial Econometrics," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 13-32, Spring.
    27. Ben-David, Dan, 1994. "Convergence Clubs and Diverging Economies," CEPR Discussion Papers 922, C.E.P.R. Discussion Papers.
    28. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    29. Charles I. Jones, 1997. "On the Evolution of the World Income Distribution," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 19-36, Summer.
    30. Costas Megir & Danny Quah, 1996. "Regional Convergence Clusters Across Europe," CEP Discussion Papers dp0274, Centre for Economic Performance, LSE.
    31. de la Fuente, Angel, 1997. "The empirics of growth and convergence: A selective review," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 23-73, January.
    32. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    33. Birchenall, Javier A., 2001. "Income distribution, human capital and economic growth in Colombia," Journal of Development Economics, Elsevier, vol. 66(1), pages 271-287, October.
    34. Emili Tortosa‐Ausina & Francisco Pérez & Matilde Mas & Francisco J. Goerlich, 2005. "Growth and Convergence Profiles in the Spanish Provinces (1965–1997)," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 147-182, February.
    35. Harry Kelejian & Gianfranco Piras, 2020. "Spillover effects in spatial models: Generalizations and extensions," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 425-442, June.
    36. Danny Quah, 1996. "Aggregate and Regional Disaggregate Fluctuations," CEP Discussion Papers dp0275, Centre for Economic Performance, LSE.
    37. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    38. Boris Branisa & Adriana Cardozo, 2009. "Revisiting the Regional Growth Convergence Debate in Colombia Using Income Indicators," Ibero America Institute for Econ. Research (IAI) Discussion Papers 194, Ibero-America Institute for Economic Research, revised 21 Aug 2009.
    39. Quah, D., 1990. "Galton'S Fallacy And The Tests Of The Convergence Hypothesis," Working papers 552, Massachusetts Institute of Technology (MIT), Department of Economics.
    40. Margherita Gerolimetto & Stefano Magrini, 2017. "A Novel Look at Long-run Convergence Dynamics in the United States," International Regional Science Review, , vol. 40(3), pages 241-269, May.
    41. Quah, Danny, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
    42. Jerzmanowski, Michal, 2006. "Empirics of hills, plateaus, mountains and plains: A Markov-switching approach to growth," Journal of Development Economics, Elsevier, vol. 81(2), pages 357-385, December.
    43. Johnson, Paul A., 2005. "A continuous state space approach to "Convergence by Parts"," Economics Letters, Elsevier, vol. 86(3), pages 317-321, March.
    44. Liliana Franco Vásquez & José Luis Raymond Bara, 2009. "Convergencia económica regional: el caso de los Departamentos colombianos," Revista Ecos de Economía, Universidad EAFIT, March.
    45. Quah, Danny, 1996. "Aggregate and regional disaggregate fluctuations," LSE Research Online Documents on Economics 2081, London School of Economics and Political Science, LSE Library.
    46. Nazrul Islam, 2003. "What have We Learnt from the Convergence Debate?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 309-362, July.
    47. Kremer, Michael & Onatski, Alexei & Stock, James, 2001. "Searching for prosperity," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 55(1), pages 275-303, December.
    48. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    49. Bulli, Sandra, 2001. "Distribution Dynamics and Cross-Country Convergence: A New Approach," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 226-243, May.
    50. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
    51. Boris Branisa & Adriana Cardozo, 2009. "Regional Growth Convergence in Colombia Using Social Indicators," Ibero America Institute for Econ. Research (IAI) Discussion Papers 195, Ibero-America Institute for Economic Research.
    52. Geweke, John & Marshall, Robert C & Zarkin, Gary A, 1986. "Mobility Indices in Continuous Time Markov Chains," Econometrica, Econometric Society, vol. 54(6), pages 1407-1423, November.
    53. Birchenall Jiménez Javier Arturo, 1997. "Convergencia regional: una revisión del caso colombiano," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, September.
    54. Johnson, Paul A., 2000. "A nonparametric analysis of income convergence across the US states," Economics Letters, Elsevier, vol. 69(2), pages 219-223, November.
    55. Ramajo, Julián & Márquez, Miguel A. & Hewings, Geoffrey J.D. & Salinas, María M., 2008. "Spatial heterogeneity and interregional spillovers in the European Union: Do cohesion policies encourage convergence across regions?," European Economic Review, Elsevier, vol. 52(3), pages 551-567, April.
    56. Philipp Breidenbach & Timo Mitze & Christoph M. Schmidt, 2019. "EU Regional Policy and the Neighbour's Curse: Analyzing the Income Convergence Effects of ESIF Funding in the Presence of Spatial Spillovers," Journal of Common Market Studies, Wiley Blackwell, vol. 57(2), pages 388-405, March.
    57. Giannetti, Mariassunta, 2002. "The effects of integration on regional disparities: Convergence, divergence or both?," European Economic Review, Elsevier, vol. 46(3), pages 539-567, March.
    58. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
    59. Bonet, Jaime & Meisel, Adolfo, 2009. "Regional economic disparities in Colombia," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 14, pages 61-80.
    60. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
    Full references (including those not matched with items on IDEAS)

    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. Jesús Peiró-Palomino & William Orlando Prieto-Bustos & Emili Tortosa-Ausina, 2023. "Regional income convergence in Colombia: population, space, and long-run dynamics," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 559-601, April.
    2. Sergio J. Rey & Mark V. Janikas, 2003. "Convergence and space," Urban/Regional 0311002, University Library of Munich, Germany, revised 16 Nov 2003.
    3. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    4. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    5. Arribas, Iván & Pérez, Francisco & Tortosa-Ausina, Emili, 2008. "On the Dynamics of Globalization," MPRA Paper 16007, University Library of Munich, Germany, revised 2008.
    6. Iván Arribas & Francisco Pérez & Emili Tortosa-Ausina, 2014. "The dynamics of international trade integration: 1967–2004," Empirical Economics, Springer, vol. 46(1), pages 19-41, February.
    7. Cheong, Tsun Se & Wu, Yanrui, 2018. "Convergence and transitional dynamics of China's industrial output: A county-level study using a new framework of distribution dynamics analysis," China Economic Review, Elsevier, vol. 48(C), pages 125-138.
    8. Luis Armando Galvis-Aponte & Wendy Galvis-Larios & Lucas Wilfried Hahn-De-Castro, 2017. "Una revisión de los estudios de convergencia regional en Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 15914, Banco de la República, Economía Regional.
    9. Mendez-Guerra, Carlos, 2018. "Beta, Sigma and Distributional Convergence in Human Development? Evidence from the Metropolitan Regions of Bolivia," MPRA Paper 87627, University Library of Munich, Germany.
    10. Enrico Fabrizi & Gianni Guastella & Stefano Marta & Francesco Timpano, 2016. "Determinants of Intra-Distribution Dynamics in European Regions: An Empirical Assessment of the Role of Structural Intervention," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(5), pages 522-539, December.
    11. Kounetas, Konstantinos E. & Polemis, Michael L. & Tzeremes, Nickolaos G., 2021. "Measurement of eco-efficiency and convergence: Evidence from a non-parametric frontier analysis," European Journal of Operational Research, Elsevier, vol. 291(1), pages 365-378.
    12. George W. Hammond & Eric Thompson, 2006. "Convergence and Mobility: Personal Income Trends in U.S. Metropolitan and Nonmetropolitan Regions," International Regional Science Review, , vol. 29(1), pages 35-63, January.
    13. Peiró-Palomino, Jesús & Picazo-Tadeo, Andrés J. & Tortosa-Ausina, Emili, 2021. "Measuring well-being in Colombian departments. The role of geography and demography," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    14. 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.
    15. Ezcurra, Roberto, 2007. "Is there cross-country convergence in carbon dioxide emissions?," Energy Policy, Elsevier, vol. 35(2), pages 1363-1372, February.
    16. Carlos Mendez-Guerra, 2017. "Heterogeneous Growth and Regional (Di)Convergence in Bolivia: A Distribution Dynamics Approach," Economia Coyuntural,Revista de temas de perspectivas y coyuntura, Instituto de Investigaciones Economicas y Sociales 'Jose Ortiz Mercado' (IIES-JOM), Facultad de Ciencias Economicas, Administrativas y Financieras, Universidad Autonoma Gabriel Rene Moreno, vol. 2(4), pages 81-108.
    17. M. Herrerías, 2012. "Weighted convergence and regional growth in China: an alternative approach (1952–2008)," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 685-718, December.
    18. Li, Qing & Vo, Long Hai & Wu, Yanrui, 2019. "Intangible capital distribution in China," Economic Systems, Elsevier, vol. 43(2), pages 1-1.
    19. Bickenbach, Frank & Bode, Eckhardt, 2001. "Markov or not Markov - this should be a question," Kiel Working Papers 1086, Kiel Institute for the World Economy (IfW Kiel).
    20. Azomahou, Théophile T. & El ouardighi, Jalal & Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2011. "Testing convergence of European regions: A semiparametric approach," Economic Modelling, Elsevier, vol. 28(3), pages 1202-1210, May.

    More about this item

    Keywords

    Colombia; convergence; departments; distribution dynamics; spatial spillovers; weights;
    All these keywords.

    JEL classification:

    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:jau:wpaper:2020/01. See general information about how to correct material in RePEc.

    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: María Aurora Garcia Gallego (email available below). General contact details of provider: https://edirc.repec.org/data/ueujies.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.