1. Regional Productivity Convergence in Peru
- Author
-
Iacovone, Leonardo, Sanchez-Bayardo, Luis F., and Sharma, Siddharth
- Subjects
TECHNOLOGY DIFFUSION ,REGIONAL SPECIALIZATION ,INFORMATION ,INVESTMENT ,REGIONAL PRODUCTIVITY ,GROWTH RATES ,POOR REGIONS ,ECONOMIC GROWTH ,AGGREGATE PRODUCTIVITY ,REGIONAL INCOME ,SPATIAL EQUITY ,CONVERGENCE ,EMPLOYMENT ,HIGH POVERTY REGIONS ,GLOBAL INTEGRATION ,INCOME ,PRODUCTIVITY LEVEL ,PRODUCTIVITY ,LABOR PRODUCTIVITY ,WORKERS ,JOBS ,POVERTY RATES ,REGIONAL GAPS ,POVERTY ,AGRICULTURAL PRODUCTIVITY ,RICH REGIONS ,PRODUCTION PROCESSES ,GROWTH THEORY ,SOCIAL SERVICES ,PRODUCTIVITY DISTRIBUTION ,ADVANCED REGIONS ,PRODUCTIVITY GROWTH RATE ,FARM PRODUCTIVITY ,SERVICE SECTOR ,POORER PEOPLE ,SKILLED WORKERS ,ORGANIZATIONS ,FINANCIAL MARKETS ,CONSUMPTION BASKET ,TOTAL EMPLOYMENT ,STANDARD ERRORS ,DEVELOPMENT ECONOMICS ,WORKER ,MARKETS ,REGIONAL DIFFERENCES ,FINANCE ,GLOBAL PRODUCTION ,PRICES ,WAGES ,LAGGING REGIONS ,PRODUCTION ,POVERTY LEVEL ,CONSUMPTION ,PRODUCTIVITY LEVELS ,THEORY ,POVERTY REDUCTION ,HIGH‐POVERTY REGION ,STRUCTURAL TRANSFORMATION ,REGIONAL OUTPUT ,LABOR DEMAND ,SUPPLY ,LABOR MOBILITY ,EMPLOYMENT SHARE ,MANUFACTURING INDUSTRIES ,REGIONAL GROWTH ,REGIONAL ECONOMIC GROWTH ,POVERTY GAP ,DECLINE IN POVERTY ,RURAL POPULATION ,PRODUCTIVITY GROWTH ,AGGREGATE CONVERGENCE ,HOUSEHOLD SURVEY ,SPATIAL ANALYSIS ,SPATIAL DISPERSION ,REGIONAL INCOMES ,REGIONAL TRADE ,LABOR ALLOCATION ,POLITICAL ECONOMY ,REGIONAL DEVELOPMENT POLICIES ,REGIONAL DATA ,ACCOUNTING ,HUMAN CAPITAL LEVELS ,VALUE ,POLICIES ,LABOR SHARE ,REGIONS ,PRODUCTION CHAINS ,HUMAN CAPITAL ,EFFECTS ,EQUITY ,REGIONAL INEQUALITIES ,PRODUCTIVITY CONVERGENCE ,REGIONAL LABOR ,LABOR PRODUCTIVITY GROWTH ,REGIONAL CONVERGENCE ,REGION ,GROWTH RATE ,POVERTY REGIONS ,MANAGEMENT ,REGIONAL DEVELOPMENT ,LABOR ,POVERTY LEVELS ,MARKET INTEGRATION ,ECONOMICS ,AGRICULTURAL PRODUCTS ,POVERTY ALLEVIATION ,COMPETITIVE PRESSURE ,SPATIAL PATTERNS ,COMPARATIVE ADVANTAGE ,POVERTY LINE ,CAPITAL ACCUMULATION ,EMPLOYMENT INFORMATION ,TOTAL FACTOR PRODUCTIVITY ,LABOR REALLOCATION ,GLOBAL PRODUCTION CHAINS ,SCHOOLING ,POVERTY RATE ,FIRM‐LEVEL - Abstract
This paper examines whether labor productivity converged across Peru’s regions (“departments”) during 2002-12. Given the large differences in labor productivity across the regions of Peru, such convergence has the potential to raise aggregate productivity and incomes, and also reduce regional inequalities. The paper finds that labor productivity in the secondary sector (especially manufacturing) and the mining sector has converged across Peruvian departments. The paper does not find robust evidence for labor productivity convergence in agriculture and services. These patterns are consistent with recent cross-country evidence and with the hypothesis that productivity convergence is more likely in sectors with greater scope for market integration, because of the effects of competition and knowledge flows. The convergence in labor productivity within manufacturing and mining has been sufficient to lead to convergence in aggregate labor productivity across departments. But because services and agriculture continue to employ the majority of workers in Peru, aggregate convergence is slower than that within manufacturing. The paper also finds that poverty rates are not converging across departments. The limited impact of labor productivity convergence on poverty could be tied to the facts that not all sectors are experiencing productivity convergence, poorer people are employed in sectors where convergence has been slower (such as agriculture), and there is very little labor reallocation toward converging sectors (such as manufacturing).
- Published
- 2015