Regional Convergence in Latin America

 
Author/Editor: Serra, Maria Isabel ; Pazmino, Maria Fernanda ; Lindow, Genevieve ; Sutton, Bennett ; Ramirez, Gustavo
 
Publication Date: May 01, 2006
 
Electronic Access: Free Full text (PDF file size is 445KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper presents empirical evidence on convergence of per capita output for regions within six large middle-income Latin American countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. It explores the role played by several exogenous sectoral shocks and differences in steady states within each country. It finds that poor and rich regions within each country converged at very low rates over the past three decades. It also finds evidence of regional "convergence clubs" within Brazil and Peru- the estimated speeds of convergence for these countries more than double after controlling for different subnational levels of steady state. For the latter countries and Chile, convergence is also higher after controlling for sector-specific shocks. Finally, results show that national disparities in per capita output increased temporarily after each country pursued trade liberalization.
 
Series: Working Paper No. 06/125
Subject(s): Economic growth | Argentina | Brazil | Chile | Colombia | Mexico | Peru | Latin America | Productivity | Production

Author's Keyword(s): Growth | convergence | regional disparities | Argentina | Brazil | Chile | Colombia | Mexico | Peru
 
English
Publication Date: May 01, 2006
ISBN/ISSN: 0 / 1934-7073 Format: Paper
Stock No: WPIEA2006125 Pages: 29
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
Please address any questions about this title to publications@imf.org