Nagoya University · Economics, Econometrics and Finance
Professor Carlos Mendez's research lab specializes in regional economic development, with a focus on spatial inequality, convergence dynamics, and human capital constraints across regions and countries. The lab investigates regional disparities in productivity, income, and human development using advanced econometric methods such as dynamic factor models, distribution dynamics, and machine learning-based clustering. Research spans diverse contexts including Indonesia, Bolivia, and global cross-country comparisons, emphasizing institutional factors, spatial dependence, and policy implications for inclusive growth.
Figures are computed from collected data and may differ slightly.
Abstract This paper studies the evolution of regional disparities in labor productivity, capital accumulation, and efficiency across Indonesian provinces over the 1990–2010 period. Through the lens of a nonlinear dynamic factor model, we first test the hypothesis that all provinces would eventually converge to a common steady‐state path. We reject this hypothesis and find that the provincial dynamics of labor productivity are characterized by two convergence clubs. We next evaluate the dynamics
Abstract The discussion on regional income per capita convergence in Indonesia continues with an emphasis on whether regional per capita incomes tend to converge or diverge over the long run. This study evaluates the regional convergence hypothesis at the provincial level during the recent deindustrialization period 2001–2017 of Indonesia. First, the study examines the existence of convergence clubs in Indonesia using a recently assembled panel dataset. Results reveal four convergence clubs with
Bolivia has experienced large socioeconomic transformations in the last decades. Among them, almost half of the population currently lives in the main metropolitan regions of the country. Motivated by the potential for growth and development convergence in these regions, this article documents the evolution of human development disparities and convergence patterns over the 1992-2013 period. Using a distribution dynamics framework, this article evaluates both the transitional dynamics and the lon
The cross-country convergence hypothesis is one of the central topics of long-run macroeconomics. This paper revisits this hypothesis in a context beyond GDP. It uses a novel welfare index that incorporates measures of consumption, leisure, life expectancy, and inequality. Based on a sample of 128 countries over the 1980–2007 period, the lack of global sigma and beta convergence is first documented. Next, the paper incorporates some recent developments from the unsupervised machine learning lite
Using a novel dataset, this article studies the spatial distribution of human capital constraints across 339 municipalities in Bolivia. In particular, five human capital constraints are evaluated: chronic malnutrition in children, non-Spanish speaking population, secondary dropout rate of males, secondary dropout rates of females, and inequality in years of education. Through the lens of principal components, spatial dependence, and regionalization methods, the municipalities are endogenously cl
Industrialization has been used as a development ladder by most of present day's advanced economies. Regional convergence, besides being source of interpersonal inequality reduction, is a predictor of social cohesion, peace, and political stability. This chapter explores the interaction between these two pillars of development. It emphasizes that the successful implementation of a regionally inclusive industrial policy (RIIP) largely depends on the strength and weaknesses of the institutional en
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