La hipótesis de la convergencia condicional en Ecuador. Un análisis a nivel cantonal

The aim of this study is to test the relative convergence hypothesis in Ecuador at cantonal level, considering a set of explanatory variables. Following Barro and Sala-i-Martin (1991), a model of nonlinear least squares (NLMS) is estimated using cross-sectional data from 2007 to 2012. The main findings indicate absolute convergence rate of 1,37% per annum between municipalities. With the conditioning factors (illiteracy rate, percentage of households with electricity grid, the average number of children, agricultural production, manufacturing and remittances as a percentage of cantonal gross value added) the convergence rate is reduced to 1,12% annually, indicating that differences in these variables explain a considerable part of the slow territorial convergence in Ecuador.