Departmental differences of growth. A convergence analysis for Pery: 1961-1996

Abstract

Starting from the Growth Neoclassical Theory, this work explores if the benefits of growth experimented in Peru in nineties will feel in its whole population. lf that so, when it will happen? Particularly, do departments of Peru converge into a same level of per-capita product or, at least, one unique rate of growth? For no limiting this work to the starting year of departmental production statistics (1970), the GDP departmental of 1961 has been estimated also. Even though there is no evidence about convergence, it is found that it is possible for the Government to affect the long run production. In other side, analphabetism index affects negatively the value of per-capita production, that indicates importance of a educational policy in that way. Also, public investment and public expenses can attend immediate demands of ones that require it, but in the long run only affect negatively on production level.