Agglomeration externalities in Ecuador: do urbanization and tertiarization matter?

The paper investigates whether the tertiarization and rapid urbanization faced by developing countries favour agglomeration economies. Focusing on Ecuadorian cantons, a productivity equation is estimated using the generalized method of moments model with instruments controlling for endogeneity. The...

Full description

Saved in:
Bibliographic Details
Published in:Regional studies 2019-05, Vol.53 (5), p.706-719
Main Authors: Guevara-Rosero, Grace Carolina, Riou, Stéphane, Autant-Bernard, Corinne
Format: Article
Language:English
Subjects:
Agglomeration
agglomeration externalities
Competition
Control equipment
Density
Developing countries
Economic models
Externality
Generalized method of moments
Industrial concentration
Latin America
LDCs
Method of moments
Productivity
tertiarization
Urbanization
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The paper investigates whether the tertiarization and rapid urbanization faced by developing countries favour agglomeration economies. Focusing on Ecuadorian cantons, a productivity equation is estimated using the generalized method of moments model with instruments controlling for endogeneity. The varying impact of industrial concentration, diversity, competition and density across industries is investigated and, for the first time, the implication of the level of urbanization on agglomeration externalities is studied. Stronger effects are found for services. The threshold of urbanization at which diversity, density and competition agglomeration externalities all generate positive effects was 33%, while they seem challenged by congestion in highly urbanized cantons.
ISSN:0034-3404
1360-0591
DOI:10.1080/00343404.2018.1470325