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2013 | OriginalPaper | Buchkapitel

5. Growth and Regional Disparities in Latin America Concentration Processes and Regional Policy Challenges

verfasst von : Juan R. Cuadrado-Roura, Sergio Gonzalez-Catalán

Erschienen in: Regional Problems and Policies in Latin America

Verlag: Springer Berlin Heidelberg

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Abstract

The focus of this chapter is centered on the process of product concentration and the evolution of regional disparities in Latin America and its relationship to countries’ economic growth. For this purpose, a group of eight countries have been taken into account: Argentina, Bolivia, Brazil, Colombia, Chile, Mexico, Panama and Peru. To carry out the empirical analysis these countries offer the advantage of having uniform regional and national data that enables the comparison between them. Nevertheless, figures from Ecuador will also be considered to study some specific aspects, as regional disparities of income per capita, the concentration of population and the increasing exports of raw materials to other American, European and Asian economies.

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Vorheriges Kapitel The Origins, Development and Current State of Territorial Policies in Latin America in the Twentieth and Twenty-First Centuries

Nächstes Kapitel Concentration and Growth in Latin American Countries

Here we take as ‘regions’ the political administrative divisions named according to the different countries: states, provinces and regions.

The origin of many of them is located in distant historical periods, but it has been since the 1950s. and 1960s. when these facts and trends are reinforced.

Some of them could be clearly differentiated – for example, the concentration of production and population – and even incorporate some more, but we present the most remarkable from an economic and regional perspective.

See chapter written by J. Máttar and L. Riffo included in this book (Chap. 3)

This index is the sum of the differences between surface and GDP ratio for country regions. The index takes values from 0 when the surface and GDP all have the same regional ratio and tends to 1 when the differences between product and area ratios of each region are higher.

See chapters by S. Boisier and L.M. Cuervo and N. Cuervo in this book.

The Gini coefficient expresses regional differences in GDP per capita and varies in a range between 0 (low disparity) and 1 (high disparity). Regions are defined as the first subnational administrative scale.

Gini coefficient of regional inequalities: \( \begin{array}{ccc}\hfill \frac{2}{N-1}\ast {\displaystyle \sum_{i=1}^{N-1}\left({F}_i-{Q}_i\right)}\hfill & \hfill {F}_i=\frac{i}{N}\hfill & \hfill Q=\frac{{\displaystyle \sum_{j=1}^i{y}_i}}{{\displaystyle \sum_{j=1}^N{y}_j}}\hfill \end{array} \)

y_i: GDP per capita for region i N: number of regions

A paradigmatic example is the exploitation of nitrates in Chile, Peru and Bolivia in the nineteenth century and its rapid decline after 1920 as a result of the occurrence of chemical nitrates and fertilizers

See the chapter written by J. Máttar y L. Riffo on this volume (Chap. 3).

Panel data from nine countries is used in the analysis (Argentina, Bolivia, Brazil, Colombia, Chile, Mexico, Panama, Ecuador, Peru) for the 1988–2010 period. The data corresponds to an unbalanced panel, due to lack of information for all the years in the period.

For example, the EU has rectified its regional policy towards increasing shares and benefits for prioritized regions according to a criterion: that GDP pc. is below 75 % of the Community average. The margin for grant aid to the remaining regions has been reduced, linking them with the general objectives of the Community.

For example: in the European Union.

Auty RM (1993) Sustaining development in mineral economies: the resource curse thesis. Routledge, LondonCrossRef

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OECD (2012) Promoting growth in all regions. OECD, Paris, March

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Sachs JD, Warner A (1995) Natural resource abundance and economic growth. National Bureau of Economic Research Working Paper No. 5398, National Bureau of Economic Research, Cambridge

Sachs JD, Warner AM (2001) The curse of natural resources. Eur Econ Review 45(4–6):827–838, Elsevier, http://ideas.repec.org/a/eee/eecrev/v45y2001i4-6p827-838.html

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Titel: Growth and Regional Disparities in Latin America Concentration Processes and Regional Policy Challenges
verfasst von: Juan R. Cuadrado-Roura
Sergio Gonzalez-Catalán
Verlag: Springer Berlin Heidelberg
Buch: Regional Problems and Policies in Latin America
Print ISBN: 978-3-642-39673-1

Electronic ISBN: 978-3-642-39674-8

Copyright-Jahr: 2013
DOI: https://doi.org/10.1007/978-3-642-39674-8_5

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