Application of the Kernel Density Function for the Analysis of Regional Growth and Convergence in the Service Sector through Productivity

The aim of this research work is to analyze growth and convergence processes in the service sector and its large groups, market, and non-market services, at the regional level in Ecuador by taking the labor productivity variable as a reference. The methodology used is an analysis of distributive dyn...

Full description

Bibliographic Details
Main Authors: Ronny Correa-Quezada, Lucía Cueva-Rodríguez, José Álvarez-García, María de la Cruz del Río-Rama
Format: Article
Language:English
Published: MDPI AG 2020-07-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/8/8/1234
Description
Summary:The aim of this research work is to analyze growth and convergence processes in the service sector and its large groups, market, and non-market services, at the regional level in Ecuador by taking the labor productivity variable as a reference. The methodology used is an analysis of distributive dynamics of the data, applying the non-parametric method of Kernel density functions from a mathematical economics approach. The results obtained show that the service sector has non-alarming levels of inequality, its trend over time is increasing. When disaggregating the data, it was observed that non-market services show a rapid growth in inequality. In contrast, market services show greater stability during the period analyzed. Regarding intra-distribution dynamics for the service sector and its subsectors, in the long term, poor regions improve, while rich regions deteriorate. However, deterioration of advanced regions is less intense in non-market services.
ISSN:2227-7390