Regional convergence clubs and their determinants in Peru

Paredes R.P. · Desarrollo y Sociedad (2023) · DOI: 10.13043/dys.94.5

Resumen

Promoting convergence between regions is essential to ensure that both the wealthiest and poorest regions achieve comparable levels of development over time. With this objective in mind, the objectives of the research were to determine the existence of global convergence or convergence clubs among the regions in Peru, as well as to identify the factors influencing such convergence. To identify convergence clubs, the study utilized the load factor methodology introduced by Phillips and Sul (2007) and analyzed panel data from the 2004-2008 period. The results reveal the presence of three convergence clubs based on GDP per capita and labor productivity. Additionally, the composition of the clubs in terms of GDP per capita and labor productivity depend directly on human capital, royalty transfers, and spatial location. These findings suggest that the State should prioritize regions belonging to the poorer convergence clubs.

Instituciones: Universidad Nacional del Altiplano