Regional economic growth and convergence: The role of institutions and spillover effects in Colombia

Aristizábal, Juan Manuel; García, Gustavo

doi:10.1111/rsp3.12334

Cited by 6 publications

(8 citation statements)

References 47 publications

(62 reference statements)

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“…Our results are consistent with Tsangarides (2010), who pointed out that a more developed financial sector and a democratic system are the main determinants of convergence in Africa. Our findings regarding the role of institutional quality in convergence are in line with those of Aristizãbal and Garcãa (2020), which mobilized a database for 24 departments of Colombia and found that institutional quality is crucial for regional convergence in Colombia. However, institutional factors in one region have a negative effect on the economic growth of neighboring regions, a fact explained by the institutional heterogeneity of these regions.…”

Section: Empirical Results and Discussionsupporting

confidence: 91%

“…This has a dual purpose, firstly empirical, to address the issue of possible collinearity between the six subindicators of institutional quality. The second is a research interest, to conduct a comparative analysis across the different African countries in our sample in terms of institutional quality, as opposed to the majority of studies that have tackled this issue (Aristizãbal & Garcãa, 2020; Saha et al, 2022) to mobilize separate variables to assess institutional quality.…”

Section: Empirical Methodology: Data Variables and Empirical Modelmentioning

confidence: 99%

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Regional convergence and catching up process in Africa: A tale of three clubs

Ibourk

Elouaourti

2023

Regional Science Policy & Practice

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The aims of this article were twofold. First, to tackle the issue of convergence from an analytical point of view by presenting the mathematical developments of the main economic growth models, which emphasized that the convergence of African economies is conditional to the investment level in the early stages of physical capital accumulation. As the latter increases, the convergence of African economies is determined by other factors (investment in research and development (R&D) and human capital, etc.). Second, to verify the empirical validity of these models by confronting them with data from 33 African economies stratified by development level over the period 2004–2019. Empirical results using both spatial and nonspatial panel estimation methodology and the ‘beta‐convergence’ approach pointed to three ‘convergence clubs,’ as well as a conditional convergence for all these clubs. However, the determinants of convergence among African economies differ by development level. In low‐income economies, convergence is conditional to financial development and inflation level. For lower‐middle‐income economies, institutional quality and inflation level contribute to the convergence of this club. The convergence of upper‐middle‐income economies is conditioned by public spending and human capital. In terms of policy implications, countries should develop measures that strengthen institutional reforms to improve the functioning of financial systems, democratic accountability, control of corruption, business climate, economic growth, strengthening the legal environment, and improving competition by reducing public expenditures. This paper is original insofar as it advances the field from the current state of knowledge in several ways. First, to stand out from the existing literature, we conducted a comparative analysis of the institutional quality levels across 33 African countries by developing an institutional quality index through the use of a principal component analysis (PCA) method. Second, we tested the empirical validity of the convergence hypothesis beneath economic growth theories and in the African context; moreover, it has verified the possible existence of ‘convergence clubs,’ then, it brought to light the main determinants of the convergence of these clubs.

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Section: Empirical Results and Discussionsupporting

confidence: 91%

Section: Empirical Methodology: Data Variables and Empirical Modelmentioning

confidence: 99%

Regional convergence and catching up process in Africa: A tale of three clubs

Ibourk

Elouaourti

2023

Regional Science Policy & Practice

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“…The latest empirical results related to convergence from outside Indonesia are results that state there is convergence, including in Europe by Kubis and Schneider (2016); Butkus et al (2018); Alexa et al (2019); Dogan and Kındap (2019); Balash et al (2020); Montresor et al (2020); Postiglione et al (2020);Demidova, (2021). In America by Yu and Lee (2012); Breau and Saillant (2016);Flores-Chamba et al (2019); Leiva and Pino (2020); Aristizábal and García (2021), in Asia by Barro (2016); Lee (2016;; ; (Mendez and Santos-Marquez, 2020). On the other hand, the results suggest a divergence by Goschin (2014;, Simionescu (2014), Pietrzykowski (2019) in Europe, Lolayekar and Mukhopadhyay (2017; in Asia, and Kant (2019) in Africa.…”

Section: The Phenomenon Of Inequality Development Between Regions Inmentioning

confidence: 99%

“…Furthermore, the latest research on the application and development of spatial convergence is carried out with different regional analysis units, including by Sanso-Navarro et al (2020) across countries worldwide, Yu and Lee (2012) in the United States, Breau and Saillant (2016) in Canada, Aristizábal and García (2021) in Columbia, Flores-Chamba et al ( 2019) in Ecuador, Leiva and Pino (2020) in Chile, Lima andNeto (2016) in Brazil, Alexa et al (2019); Balash et al (2020); Montresor et al (2020); Panzera and Postiglione (2021); Pietrzykowski (2019); Postiglione et al (2020) in the European Union region, Yildirim et al (2009); Dogan and Kındap (2019) in Turkey, Goschin (2017) in Romania, Sun et al (2017) in China, Chatterjee (2017) in India, Mendez and Santos-Marquez (2020) in the ASEAN region, and Indonesia by Vidyattama (2013); Aritenang (2014); Aspiansyah and Damayanti (2019). Empirical results show that geographically weighted regression increases the model's better explanatory power.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?

Hidayat

Bachtiar

Sjafrizal

et al. 2022

IJEEP

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This research aims to prove the existence of a convergence process and analyse the effect of investment and energy infrastructure on the convergence process on Sumatra Island by including the element of space to understand spatial convergence better. The dataset used in panel data consists of 154 regions (district/municipality) from 2010 to 2020. The analytical tools used with a spatial econometric approach consist of Spatial Autoregressive (SAR) and Spatial Error Model (SEM). The results of the convergence test prove that there is convergence in both absolute and conditional convergence, and there is a difference in the speed of convergence for the two equations. Meanwhile, the results of the spatial approach state that there are spatial dependencies so that neighbouring regions influence the region. The estimation results of conditional β-convergence reveal that investment and government spending in infrastructure has a positive and significant effect, in contrast to energy infrastructure, which has a negative and significant relationship, and only human capital is not significant to the convergence process in Sumatra.

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“…Colombia entre las naciones en desarrollo de la región, se ha caracterizado por un crecimiento económico relativamente estable, pero con altos niveles de pobreza y desigualdad (Han y Maisel 2018; Robinson, 2016;Aristizábal y García, 2020); estos fenómenos que no se han distribuido de forma homogénea sobre el territorio, se manifiestan como persistentes disparidades regionales en su interior. Las regiones centrales con mayor concentración de población y actividad económica como la capital Bogotá y los departamentos de Antioquia y Valle exhiben mejores indicadores de desempeño económico y social frente a otras periféricas como La Guajira, Chocó y Amazonas, que a decir de varios autores han sido desatendidas por el gobierno nacional (García, 2017;Galvis, Hahn, y Galvis, 2017;OCDE, 2018).…”

Section: Introductionunclassified

Clubes de convergencia regional en Colombia 2000-2016

Benavides¹,

Mina²

2022

IIRR-JORR

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Los análisis de convergencia económica en Colombia han mostrado resultados en distintas direcciones; aportar evidencia para enfocar los esfuerzos de política pública en la reducción de las brechas regionales resulta muy pertinente. Usando como variable de análisis el PIB per cápita de los departamentos y la capital del país en el periodo 2000-2016, este artículo evalúa la hipótesis de convergencia total frente a la presencia de clubes regionales por medio de la prueba de Phillips y Sul (2007). Después de excluir del análisis las principales regiones mineras del país se identifican seis clubes de convergencia departamental y un grupo que diverge. Los resultados sugieren la persistencia de la desigualdad en el conjunto nacional, pero múltiples equilibrios o estados estacionarios por grupos de departamentos.

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Regional economic growth and convergence: The role of institutions and spillover effects in Colombia

Cited by 6 publications

References 47 publications

Regional convergence and catching up process in Africa: A tale of three clubs

Regional convergence and catching up process in Africa: A tale of three clubs

Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?

Clubes de convergencia regional en Colombia 2000-2016

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