Regional Growth and Convergence in Chile 1960–1998: The Role of Public and Foreign Direct Investment

Patricio Aroca, Mariano Bosch Mossi, Geoffrey J.D. Hewings

Research output: Chapter in Book/Report/Conference proceedingChapter


The purpose of this chapter is to re-examine the convergence process in Chile, utilizing more recent data and focusing on the role of public (domestic) and foreign direct investment in shaping the welfare levels across regions. There have been many prior studies focusing on the problem of regional convergence in Chile. Morandé et al. (1996) argue that some evidence is found to support regional GDP/pc absolute convergence in Barro-style estimations for the period 1960–1992. Here, they estimated that convergence occurred at an annual rate of 1.2%. However, the same authors find that using time series analysis results raises doubts about the convergence properties derived from their equation system. Fuentes (1996) obtains similar results postulating an annual convergence rate of 1.3%; in addition, he also estimated convergence rates with income per capita data, and found this to be much higher, of the order of 7.4% per annum.
Original languageEnglish (US)
Title of host publicationStructure and Structural Change in the Chilean Economy
EditorsPatricio A Aroca, Geoffrey J D Hewings
PublisherPalgrave Macmillan
Number of pages27
ISBN (Electronic)9780230239654
ISBN (Print)9780230004962
StatePublished - Jul 28 2006


  • Foreign Direct Investment
  • Unconditional Convergence
  • Spatial Error Model
  • Public Investment
  • Spatial Dependence

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • General Business, Management and Accounting


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