Regional Productivity Convergence in Peru

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

World Bank, Washington, DC

关键词: GROWTH RATES;    JOBS;    GROWTH RATE;    EMPLOYMENT;    STRUCTURAL TRANSFORMATION;   

DOI  :  10.1596/1813-9450-7499
RP-ID  :  WPS7499

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines whether laborproductivity converged across Peru’s regions (“departments”)during 2002-12. Given the large differences in laborproductivity across the regions of Peru, such convergencehas the potential to raise aggregate productivity andincomes, and also reduce regional inequalities. The paperfinds that labor productivity in the secondary sector(especially manufacturing) and the mining sector hasconverged across Peruvian departments. The paper does notfind robust evidence for labor productivity convergence inagriculture and services. These patterns are consistent withrecent cross-country evidence and with the hypothesis thatproductivity convergence is more likely in sectors withgreater scope for market integration, because of the effectsof competition and knowledge flows. The convergence in laborproductivity within manufacturing and mining has beensufficient to lead to convergence in aggregate laborproductivity across departments. But because services andagriculture continue to employ the majority of workers inPeru, aggregate convergence is slower than that withinmanufacturing. The paper also finds that poverty rates arenot converging across departments. The limited impact oflabor productivity convergence on poverty could be tied tothe facts that not all sectors are experiencing productivityconvergence, poorer people are employed in sectors whereconvergence has been slower (such as agriculture), and thereis very little labor reallocation toward converging sectors(such as manufacturing).