Convergence in Colombia’s Total Factor Productivity: A Spatial Analysis 1992-2022

Convergence in Colombia’s Total Factor Productivity: A Spatial Analysis 1992-2022 | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Convergence in Colombia’s Total Factor Productivity: A Spatial Analysis 1992-2022 Diego Andrés Cardoso López, Jesús Antonio López Cabrera, René Cabral This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6603614/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 11 You are reading this latest preprint version Abstract This study identifies key determinants of manufacturing value added and estimates Total Factor Productivity (TFP) across Colombia’s departments. It also examines manufacturing productivity convergence, testing the absolute β-convergence hypothesis and estimating the half-life and speed of convergence to assess how quickly productivity disparities diminish. Using data from 1992 to 2022, the study applies the Levinsohn-Petrin (LP) method and the Generalized Method of Moments (GMM) following Wooldridge within a KLHEMIS framework. After estimating input elasticities, TFP is computed as the difference between value added and factor contributions. The research further evaluates productivity convergence through spatial and non-spatial analyses using a Dynamic Spatial Durbin Model and a Unit Root Test for panel data. Results indicate that non-qualified workers, human capital, electricity consumption, and investment in R&D and advertising significantly impact manufacturing value added. Both LP and GMM models suggest decreasing returns to scale. TFP growth follows a cyclical pattern, averaging 2.5% annually. The convergence analysis reveals significant interdepartmental productivity alignment, supporting absolute β-convergence. Additionally, estimates of half-life and speed of convergence provide insights into the rate at which productivity disparities decline. This study offers a detailed regional TFP estimation for Colombia’s manufacturing sector, incorporating spatial analysis. By testing absolute β-convergence and quantifying convergence dynamics, it provides novel insights into productivity growth and regional integration. JEL Codes : O40, O47, O54, L60. Social science/Development studies Social science/Economics Total Factor Productivity production function manufacturing sector regional analysis Colombia Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Editorial decision: Revision requested 21 Aug, 2025 Reviews received at journal 22 Jul, 2025 Reviewers agreed at journal 17 Jul, 2025 Reviews received at journal 10 Jul, 2025 Reviewers agreed at journal 24 Jun, 2025 Reviewers agreed at journal 13 Jun, 2025 Reviewers invited by journal 09 Jun, 2025 Editor invited by journal 30 May, 2025 Editor assigned by journal 20 May, 2025 Submission checks completed at journal 20 May, 2025 First submitted to journal 06 May, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6603614","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":471450995,"identity":"f2b24fbb-f6ec-4fbe-8a3f-b58a2da77088","order_by":0,"name":"Diego Andrés Cardoso López","email":"data:image/png;base64,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","orcid":"","institution":"Fundación Universitaria Los Libertadores","correspondingAuthor":true,"prefix":"","firstName":"Diego","middleName":"Andrés Cardoso","lastName":"López","suffix":""},{"id":471450996,"identity":"02ee08cf-b0db-412d-932d-1563632e1366","order_by":1,"name":"Jesús Antonio López Cabrera","email":"","orcid":"","institution":"Monterrey Institute of Technology and Higher Education","correspondingAuthor":false,"prefix":"","firstName":"Jesús","middleName":"Antonio López","lastName":"Cabrera","suffix":""},{"id":471450999,"identity":"3ce0f278-2c81-4c04-8a05-2ef07a961279","order_by":2,"name":"René Cabral","email":"","orcid":"","institution":"Monterrey Institute of Technology and Higher Education","correspondingAuthor":false,"prefix":"","firstName":"René","middleName":"","lastName":"Cabral","suffix":""}],"badges":[],"createdAt":"2025-05-06 13:38:22","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6603614/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6603614/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":84684749,"identity":"f2bd769c-8a29-47c7-832d-9062a0f870a3","added_by":"auto","created_at":"2025-06-16 08:48:15","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1111616,"visible":true,"origin":"","legend":"","description":"","filename":"ConvergenceinColombiasTotalFactorProductivityASpatialAnalysis19922022.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6603614/v1_covered_b3ce60c2-5d6b-409c-b4b8-c9d76992f675.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Convergence in Colombia’s Total Factor Productivity: A Spatial Analysis 1992-2022","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"humanities-and-social-sciences-communications","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"palcomms","sideBox":"Learn more about [Humanities \u0026 Social Sciences Communications](http://www.nature.com/palcomms/)","snPcode":"41599","submissionUrl":"https://submission.springernature.com/new-submission/41599/3","title":"Humanities and Social Sciences Communications","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Nature AJ","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"Total Factor Productivity, production function, manufacturing sector, regional analysis, Colombia","lastPublishedDoi":"10.21203/rs.3.rs-6603614/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6603614/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study identifies key determinants of manufacturing value added and estimates Total Factor Productivity (TFP) across Colombia’s departments. It also examines manufacturing productivity convergence, testing the absolute β-convergence hypothesis and estimating the half-life and speed of convergence to assess how quickly productivity disparities diminish. Using data from 1992 to 2022, the study applies the Levinsohn-Petrin (LP) method and the Generalized Method of Moments (GMM) following Wooldridge within a KLHEMIS framework. After estimating input elasticities, TFP is computed as the difference between value added and factor contributions. The research further evaluates productivity convergence through spatial and non-spatial analyses using a Dynamic Spatial Durbin Model and a Unit Root Test for panel data. Results indicate that non-qualified workers, human capital, electricity consumption, and investment in R\u0026amp;D and advertising significantly impact manufacturing value added. Both LP and GMM models suggest decreasing returns to scale. TFP growth follows a cyclical pattern, averaging 2.5% annually. The convergence analysis reveals significant interdepartmental productivity alignment, supporting absolute β-convergence. Additionally, estimates of half-life and speed of convergence provide insights into the rate at which productivity disparities decline. This study offers a detailed regional TFP estimation for Colombia’s manufacturing sector, incorporating spatial analysis. By testing absolute β-convergence and quantifying convergence dynamics, it provides novel insights into productivity growth and regional integration.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eJEL Codes\u003c/strong\u003e: O40, O47, O54, L60.\u003c/p\u003e","manuscriptTitle":"Convergence in Colombia’s Total Factor Productivity: A Spatial Analysis 1992-2022","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-06-16 08:32:07","doi":"10.21203/rs.3.rs-6603614/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"decision","content":"Revision requested","date":"2025-08-21T15:31:58+00:00","index":"","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2025-07-22T06:02:25+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"45614498838605428709726856623625264492","date":"2025-07-17T09:38:40+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2025-07-10T18:47:19+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"210755654802590260672152869392365631394","date":"2025-06-24T17:44:34+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"195989687024171048229816236233773175439","date":"2025-06-13T12:02:34+00:00","index":"hide","fulltext":""},{"type":"reviewersInvited","content":"","date":"2025-06-09T22:13:25+00:00","index":"","fulltext":""},{"type":"editorInvited","content":"","date":"2025-05-30T10:57:21+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2025-05-20T10:35:49+00:00","index":"","fulltext":""},{"type":"checksComplete","content":"","date":"2025-05-20T10:35:43+00:00","index":"","fulltext":""},{"type":"submitted","content":"Humanities and Social Sciences Communications","date":"2025-05-06T13:30:38+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"humanities-and-social-sciences-communications","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"palcomms","sideBox":"Learn more about [Humanities \u0026 Social Sciences Communications](http://www.nature.com/palcomms/)","snPcode":"41599","submissionUrl":"https://submission.springernature.com/new-submission/41599/3","title":"Humanities and Social Sciences Communications","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Nature AJ","inReviewEnabled":true,"inReviewRevisionsEnabled":false}}],"origin":"","ownerIdentity":"19c229de-f7e5-4082-8978-7450a2fd5505","owner":[],"postedDate":"June 16th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"under-review","subjectAreas":[{"id":50065314,"name":"Social science/Development studies"},{"id":50065315,"name":"Social science/Economics"}],"tags":[],"updatedAt":"2026-05-25T23:23:46+00:00","versionOfRecord":[],"versionCreatedAt":"2025-06-16 08:32:07","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6603614","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6603614","identity":"rs-6603614","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}