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Abstract
The objective of this research is to examine growth and convergence processes in the provinces of Ecuador, considering sectoral productivity as an analysis variable. To do so, evidence of the productivity of the agricultural, secondary and service sectors is presented, and by applying the non-parametric method of density functions of the kernel, the complete distribution of the data is analyzed. The results obtained indicate that territorial inequality in Ecuador has very different behavior depending on the sectors of the economy. It is noted that inequality in terms of productivity is very high in the agricultural sector, it is at an average level in the secondary sector, and is less intense in the service sector. In the long-term, the overall balance is that sectoral inequality decreased among Ecuadorian provinces. However, there are two processes differentiated in time; in the first phase, inequality decreases more rapidly and in the second phase, it even increases in some sectors, as in the case of secondary sector returns.
Highlights
The discussion on inequality, in relation to the growing disparity of incomes, has acquired new relevance at the global level, because the gaps between the rich and poor regions of the countries have been widening [1]
Provincial sectoral study productivity was aused as an analysis a factor was not considered
The use of non-parametric methodsin was used as an analysis variable, a factor that was not considered complements the results of preliminary investigations, achieving a better understanding of the previous studies, which is a novelty
Summary
The discussion on inequality, in relation to the growing disparity of incomes, has acquired new relevance at the global level, because the gaps between the rich and poor regions of the countries have been widening [1]. Its central thesis on the inequality spiral caused by return on capital levels above the growth rate is interesting, its perspective of analysis lacks a regional and sectoral dimension. Nations and their regions grow unevenly, and others tend to equal or approximate to an average rate. These asymmetries in growth levels have been the starting point for the analysis and discussion of the behavior of the main variables of economic activity among countries or regions, giving rise to the study of economic convergence and its derivations. The two traditional units of analysis for these studies were the comparison between countries or regions of the same country, and the two fundamental variables are income and productivity [3]
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