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...

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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
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creator Guevara-Rosero, Grace Carolina
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description 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.
doi_str_mv 10.1080/00343404.2018.1470325
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source EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); Taylor & Francis; EBSCOhost Econlit with Full Text; PAIS Index
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
title Agglomeration externalities in Ecuador: do urbanization and tertiarization matter?
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