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Stochastic convergence in average labor productivity; An analysis for Ecuador; [Convergencia estocástica en la productividad media laboral; un análisis para Ecuador]

Contaduria y Administracion | 2026

Paper Details

Authors: Contento Jiménez S.D.; Ochoa Jiménez D.A.; Guerrero Riofrío P.Y.

DOI: 10.22201/fca.24488410e.2026.5731

Journal: Contaduria y Administracion

Year: 2026

Publisher: Universidad Nacional Autonoma de Mexico

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

The paper provides empirical evidence on economic convergence of the average labor productivity of Ecuador's provinces towards the leading economies: Pichincha and Guayas, in the period 2009-2024. To achieve this, a stochastic methodology is employed that incorporates five standard unit root tests with structural breaks, the Bernard and Durlauf convergence test, and seven Pedroni cointegration tests. The results reveal that some statistics exhibit convergent trends, while others exhibit less well-defined processes relative to the benchmark provinces. These findings suggest the existence of structural barriers and economic conditions that could hinder the ability of some provinces to reach productivity levels comparable to those of Pichincha and Guayas. In addition, the influence of external factors such as variability in oil prices, financial crises, natural disasters and the Covid-19 pandemic on the dynamics of convergence is highlighted. ©2019 Universidad Nacional Autónoma de México, Facultad de Contaduría y Administración. Este es un artículo Open Access bajo la licencia CC BY-NC-SA (https://creativecommons.org/licenses/by-nc-sa/4.0/).

Keywords

cointegration; economic convergence; economic growth; stochastic convergence; unit roots