Regional Productivity Convergence in Peru
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 produ...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/11/25470529/regional-productivity-convergence-peru http://hdl.handle.net/10986/23463 |
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okr-10986-23463 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
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 |
| spellingShingle |
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 Iacovone, Leonardo Sanchez-Bayardo, Luis F. Sharma, Siddharth Regional Productivity Convergence in Peru |
| geographic_facet |
Peru |
| relation |
Policy Research Working Paper;No. 7499 |
| description |
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). |
| format |
Working Paper |
| author |
Iacovone, Leonardo Sanchez-Bayardo, Luis F. Sharma, Siddharth |
| author_facet |
Iacovone, Leonardo Sanchez-Bayardo, Luis F. Sharma, Siddharth |
| author_sort |
Iacovone, Leonardo |
| title |
Regional Productivity Convergence in Peru |
| title_short |
Regional Productivity Convergence in Peru |
| title_full |
Regional Productivity Convergence in Peru |
| title_fullStr |
Regional Productivity Convergence in Peru |
| title_full_unstemmed |
Regional Productivity Convergence in Peru |
| title_sort |
regional productivity convergence in peru |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/11/25470529/regional-productivity-convergence-peru http://hdl.handle.net/10986/23463 |
| _version_ |
1764453910974562304 |
| spelling |
okr-10986-234632021-04-23T14:04:15Z Regional Productivity Convergence in Peru Iacovone, Leonardo Sanchez-Bayardo, Luis F. Sharma, Siddharth 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 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). 2015-12-18T21:30:44Z 2015-12-18T21:30:44Z 2015-11 Working Paper http://documents.worldbank.org/curated/en/2015/11/25470529/regional-productivity-convergence-peru http://hdl.handle.net/10986/23463 English en_US Policy Research Working Paper;No. 7499 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Peru |