Regional Convergence Clubs in Colombia 2000-2016

A Flexible Analysis by Provinces

Abstract

Economic convergence studies in Colombia have shown mixed results. It is relevant to provide evidence that allows to focus public policy efforts to reduce the gaps between the country's regions. This paper using Colombian departments and the district capital applies the Phillips and Sul (2007) test to evaluate the hypothesis of total convergence versus the presence of regional clubs in GDP per capita in 2000-2016. We found evidence of divergence for the entire country but multiple steady states and departmental convergence clubs if the main mining regions are excluded from the analysis.