Regional Productivity Convergence in Peru

Sanchez-Bayardo, Luis F.; Iacovone, Leonardo; Sharma, Siddharth

Regional Productivity Convergence in Peru

Autores

Sanchez-Bayardo, Luis F.

Iacovone, Leonardo

Sharma, Siddharth

Editor

World Bank, Washington, DC

Descripción

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).

Palabras clave

GROWTH RATES, JOBS, GROWTH RATE, EMPLOYMENT, STRUCTURAL TRANSFORMATION, HOUSEHOLD SURVEY, POVERTY REDUCTION, POVERTY LINE, PRODUCTIVITY LEVELS, ECONOMIC GROWTH, ACCOUNTING, SKILLED WORKERS, LABOR REALLOCATION, PRODUCTION, PRODUCTION CHAINS, AGGREGATE PRODUCTIVITY, CAPITAL ACCUMULATION, SKILLED WORKERS, EMPLOYMENT SHARE, POVERTY LEVELS, INCOME, SCHOOLING, SERVICE SECTOR, POVERTY RATES, FARM PRODUCTIVITY, CONVERGENCE, LABOR ALLOCATION, REGIONAL INCOMES, INFORMATION, EMPLOYMENT INFORMATION, POLITICAL ECONOMY, CAPITAL ACCUMULATION, SERVICE SECTOR, ADVANCED REGIONS, EFFECTS, GLOBAL PRODUCTION CHAINS, AGGREGATE PRODUCTIVITY, LAGGING REGIONS, GLOBAL PRODUCTION CHAINS, RURAL POPULATION, COMPETITIVE PRESSURE, REGIONAL PRODUCTIVITY, HUMAN CAPITAL LEVELS, REGIONAL GROWTH, REGIONAL PRODUCTIVITY, REGION, REGIONAL GAPS, POVERTY REDUCTION, REGIONAL DATA, HIGH‐POVERTY REGION, TOTAL FACTOR PRODUCTIVITY, REGIONAL DEVELOPMENT POLICIES, DEVELOPMENT ECONOMICS, POVERTY GAP, LABOR PRODUCTIVITY GROWTH, WORKER, REGIONAL TRADE, GLOBAL PRODUCTION, MARKET INTEGRATION, PRODUCTIVITY, LABOR PRODUCTIVITY, PRODUCTIVITY CONVERGENCE, STANDARD ERRORS, SPATIAL PATTERNS, POORER PEOPLE, MARKETS, ORGANIZATIONS, LABOR ALLOCATION, GROWTH THEORY, LABOR, LABOR PRODUCTIVITY, LABOR PRODUCTIVITY GROWTH, TOTAL EMPLOYMENT, PRODUCTION PROCESSES, EMPLOYMENT SHARE, FINANCE, HIGH POVERTY REGIONS, REGIONAL CONVERGENCE, PRODUCTIVITY GROWTH RATE, EQUITY, PRODUCTIVITY GROWTH, CONSUMPTION, HUMAN CAPITAL, GLOBAL PRODUCTION, EMPLOYMENT INFORMATION, WORKERS, PRODUCTIVITY LEVELS, WAGES, STANDARD ERRORS, POLICIES, TOTAL EMPLOYMENT, SOCIAL SERVICES, PRODUCTIVITY CONVERGENCE, POVERTY RATES, REGIONAL LABOR, SPATIAL DISPERSION, PRODUCTIVITY LEVEL, LABOR DEMAND, VALUE, REGIONAL DIFFERENCES, RICH REGIONS, SPATIAL ANALYSIS, SPATIAL EQUITY, LABOR DEMAND, TOTAL FACTOR PRODUCTIVITY, REGIONAL SPECIALIZATION, LABOR MOBILITY, PRODUCTIVITY DISTRIBUTION, TECHNOLOGY DIFFUSION, POVERTY LEVEL, ECONOMICS, HUMAN CAPITAL, MANAGEMENT, LAGGING REGIONS, PRODUCTIVITY LEVEL, POVERTY REGIONS, REGIONAL LABOR, MANUFACTURING INDUSTRIES, AGRICULTURAL PRODUCTS, THEORY, REGIONS, GROWTH RATE, REGIONAL DEVELOPMENT, INVESTMENT, REGIONAL ECONOMIC GROWTH, REGIONAL OUTPUT, COMPARATIVE ADVANTAGE, REGIONAL DEVELOPMENT, POVERTY, GLOBAL INTEGRATION, FINANCIAL MARKETS, SUPPLY, TECHNOLOGY DIFFUSION, AGGREGATE CONVERGENCE, AGRICULTURAL PRODUCTIVITY, MARKET INTEGRATION, REGIONAL TRADE, DECLINE IN POVERTY, REGIONAL INCOME, PRODUCTIVITY GROWTH, GROWTH THEORY, POOR REGIONS, AGGREGATE CONVERGENCE, POVERTY RATE, GLOBAL INTEGRATION, FINANCIAL MARKETS, CONSUMPTION BASKET, ECONOMIC GROWTH, SOCIAL SERVICES, LABOR SHARE, PRICES, FIRM‐LEVEL, POVERTY ALLEVIATION, REGIONAL CONVERGENCE, LABOR REALLOCATION, PRODUCTION PROCESSES, MANUFACTURING INDUSTRIES, REGIONAL INEQUALITIES, HOUSEHOLD SURVEY