Blogs

Regional Convergence and Spatial Dependence across Subnational Regions of ASEAN: Evidence from Satellite Nighttime Light Data

By Mendez Carlos and Santos-Marquez Felipe (2020). Published at Regional Science Policy and Practice. ABSTRACT: Satellite nighttime light data are increasingly used for evaluating the performance of economies in which official statics are non-existent, limited, or non-comparable. In this paper, we use a novel luminosity-based measure of GDP per capita to study regional convergence and spatial dependence across 274 subnational regions of the Association of South East Asian Nations (ASEAN) over the 1998-2012 period.

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Disparities in Regional Productivity, Capital Accumulation, and Efficiency across Indonesia: A Club Convergence Approach

By Mendez Carlos and Kataoka Mitsuhiko (2020). Published at Review of Development Economics. ABSTRACT: This paper studies the evolution of regional disparities in labor productivity, capital accumulation, and efficiency across Indonesian provinces over the 1990-2010 period. Through the lens of a non-linear dynamic factor model, we first test the hypothesis that all provinces would eventually converge to a common steady-state path. We reject this hypothesis and find that the provincial dynamics of labor productivity are characterized by two convergence clubs.

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Regional Efficiency Convergence and Efficiency Clusters: Evidence from the Provinces of Indonesia 1990–2010

By Mendez Carlos (2020). Published at Asia-Pacific Journal of Regional Science. ABSTRACT: Improving production efficiency at the regional level is often considered a means to reduce regional inequality. This article studies regional efficiency convergence across provinces in Indonesia over the 1990–2010 period. Through the lens of both classical and distributional convergence frameworks, the dispersion dynamics of the following three indicators are contrasted: overall efficiency, pure efficiency, and scale efficiency. Results from the classical convergence approach suggest that—on average—there is regional convergence in all these three efficiency measures.

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Regional Income Disparities, Distributional Convergence, and Spatial Effects:District-Level Evidence from Indonesia 2000-2017

By: Carlos Mendez, Anang Budi Gunawan, and Felipe Santos-Marquez. ABSTRACT Using a novel dataset, this paper studies the spatio-temporal dynamics of income per capita across provinces and districts in Indonesia over the 2000-2017 period. First, an exploratory spatial analysis suggests that spatial autocorrelation is only significant at the district level and it appears to be robust from 2013 to 2017. Thus, at the district level, we proceed to use a spatial filtering model for decomposing income into a spatially independent component and a spatial residual.

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Regional Convergence, Spatial Scale, and Spatial Dependence: Evidence from Homicides and Personal Injuries in Colombia 2010-2018

By Felipe Santos-Marquez and Carlos Mendez. Prepared for the ARSC 2019 at Saga University. ABSTRACT This paper studies regional convergence and spatial dependence of homicides and personal injuries in Colombia. In particular, through the lens of both classical and distributional convergence frameworks, two spatial scales are contrasted: municipalities and states. For both homicides and personal injuries, sigma convergence is only found at the state level. In contrast, beta convergence is found at both state and municipal level.

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Productivity Differences and Convergence Clubs in Latin America

By Carlos Mendez ABSTRACT There is a growing literature that highlights that the development potential of Latin America is highly constrained by its low productivity. In this context, this paper evaluates the productivity differences across 20 Latin American countries over the 1980-2014 period. Through the lens of a non-linear dynamic factor model, this paper finds that the productivity dynamics of Latin America appear to be characterized by a lack of overall convergence and the formation of multiple local convergence clubs.

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Lack of Global Convergence and the Formation of Multiple Welfare Clubs across Countries: An Unsupervised Machine Learning Approach

By Carlos Mendez ABSTRACT The cross-country convergence hypothesis is one of the central topics of long-run macroeconomics. This paper revisits this hypothesis in a context beyond GDP. It uses a novel welfare index that incorporates measures of consumption, leisure, life expectancy, and inequality. Based on a sample of 128 countries over the 1980–2007 period, the lack of global sigma and beta convergence is first documented. Next, the paper incorporates some recent developments from the unsupervised machine learning literature to evaluate the existence of local convergence.

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