Agglomeration Economies: An Analysis of the Determinants of Employment in the Cities of Ecuador
by
Tania Paola Torres-Gutiérrez 1
, Ronny Correa-Quezada 1, José Álvarez-García 2,* and María de la Cruz del Río-Rama 3
Tania Paola Torres-Gutiérrez 1, Ronny Correa-Quezada 1, José Álvarez-García 2,* and María de la Cruz del Río-Rama 3
1
Department of Economics, Universidad Técnica Particular de Loja (UTPL), 11-01-608 Loja, Ecuador
2
Financial Economy and Accounting Department, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Cáceres, Spain
3
Business Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, Spain
*
Author to whom correspondence should be addressed.
Symmetry 2019, 11(11), 1421; https://doi.org/10.3390/sym11111421
Received: 18 September 2019 / Revised: 6 November 2019 / Accepted: 11 November 2019 / Published: 16 November 2019
The objective of this investigation is to study the role of agglomeration economies (manufacturing) in urban employment growth, as a proxy for economic growth, between 1980 and 2010 in Ecuador. The three measures of agglomeration-specialization, diversity, and density-are tested to determine their effect on employment growth in industries. The empirical analysis is based on firm- and city-level data from manufacturing activities. A model is proposed to estimate the effect of agglomeration economies on the growth of employment and a regression is conducted using instrumental variables. In particular, the two-stage least squares (2SLS) estimator is used. We conclude that localization economies measured by a specialization index have a positive impact on the growth of employment in the period analyzed. The results are similar to those obtained by other work carried out both in developed and developing countries.
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Keywords:
agglomeration economies; employment growth; economic growth; Ecuador
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MDPI and ACS Style
Torres-Gutiérrez, T.P.; Correa-Quezada, R.; Álvarez-García, J.; del Río-Rama, M.C. Agglomeration Economies: An Analysis of the Determinants of Employment in the Cities of Ecuador. Symmetry 2019, 11, 1421.
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