Agglomeration Externalities in Ecuador. Do Urbanisation and Tertiarisation Matter?

GATE WP 1818, September 2018

29 Pages Posted: 16 Oct 2018

See all articles by GATE Working Paper Series

GATE Working Paper Series

Université de Lyon - Groupe d'Analyse et de Théorie Economique Lyon Saint-Etienne (GATE)

Carolina Guevara

Escuela Politecnica Nacional

Stephane Riou

GATE Lyon-Saint-Etienne

Corinne Autant-Bernard

University of St. Etienne

Date Written: September 12, 2018

Abstract

The paper investigates whether the tertiarisation and the rapid urbanisation faced by developing countries favour agglomeration economies. Focusing on Ecuadorian cantons, a productivity equation is estimated using the GMM 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 urbanisation on agglomeration externalities is studied. Stronger effects are found for services. The threshold of urbanisation at which diversity, density and competition agglomeration externalities all generate positive effects was 33% while they seem challenged by congestion in highly urbanised cantons.

Keywords: agglomeration externalities, productivity, urbanisation, tertiarisation, Latin America

JEL Classification: O54, L80, O18, L60

Suggested Citation

Working Paper Series, GATE and Guevara, Carolina and Riou, Stephane and Autant-Bernard, Corinne, Agglomeration Externalities in Ecuador. Do Urbanisation and Tertiarisation Matter? (September 12, 2018). GATE WP 1818, September 2018, Available at SSRN: https://ssrn.com/abstract=3248388 or http://dx.doi.org/10.2139/ssrn.3248388

GATE Working Paper Series (Contact Author)

Université de Lyon - Groupe d'Analyse et de Théorie Economique Lyon Saint-Etienne (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

HOME PAGE: http://www.gate.cnrs.fr/

Carolina Guevara

Escuela Politecnica Nacional ( email )

Ladrón de Guevara E11 253
PO·Box 17-01-2759
Quito
Ecuador

Stephane Riou

GATE Lyon-Saint-Etienne ( email )

34, rue Francis Baulier
Saint-Etienne, 42023
France

Corinne Autant-Bernard

University of St. Etienne ( email )

6, rue basse des rives
Saint Etienne, 42023
France

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
20
Abstract Views
182
PlumX Metrics