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Symmetry 2019, 11(2), 130; https://doi.org/10.3390/sym11020130

Spatial Economic Convergence and Public Expenditure in Ecuador

1
Department of Economics, Universidad Nacional de Loja (UNL), 11-01-11 Loja, Ecuador
2
Department of Economics, Universidad Técnica Particular de Loja (UTPL), 11-01-608 Loja, Ecuador
3
Financial Economy and Accounting Department, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Caceres, Spain
4
Business Organisation and Marketing Department, Faculty of Business Administration and Tourism, University of Vigo, 32004 Ourense, Spain
*
Author to whom correspondence should be addressed.
Received: 28 December 2018 / Revised: 18 January 2019 / Accepted: 21 January 2019 / Published: 23 January 2019
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Abstract

In Ecuador, the sectorial policies, public policies and state investment, increase the presence of polarized and polycentric territories with very heterogeneous characteristics and with asymmetric levels of economic growth and development. The explanation for the unequal growth of regions in Ecuador is determined by the existence of different types of asymmetries; that determine economic dynamics and non-convergent development processes. The aim of this research is to determine the effect of an increase in public spending on physical infrastructure and education, on the improvement of productive conditions and on the process of reducing disparities (convergence) at the regional level in Ecuador. To do this, the hypothesis of beta convergence will be tested, which is conditioned by the proxy variables of public expenditure or investment in infrastructure and education at provincial level, for the 2001–2015 period. The results show the existence of a "slight" process of convergence per capita and productivity, although with a significant level of territorial "segregation". In the same way, it is observed that public investment made in this period did not increase the productivity of small and medium-sized provinces significantly, severely conditioning the sustainability of the process of reducing disparities at regional level. View Full-Text
Keywords: public expenditure; regional disparities; economic convergence; beta convergence; reprimarization public expenditure; regional disparities; economic convergence; beta convergence; reprimarization
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Flores-Chamba, J.; Correa-Quezada, R.; Álvarez-García, J.; del Río-Rama, M.C. Spatial Economic Convergence and Public Expenditure in Ecuador. Symmetry 2019, 11, 130.

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