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Three Essays on Agglomeration Economies in Ecuador

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Three Essays on Agglomeration Economies in Ecuador Three Essays on Agglomeration Economies in Ecuador Moisés Lenyn Obaco Álvarez ADVERTIMENT. La consulta d’aquesta tesi queda condicionada a l’acceptació de les següents condicions d'ús: La difusió d’aquesta tesi per mitjà del servei TDX (www.tdx.cat) i a través del Dipòsit Digital de la UB (diposit.ub.edu) ha estat autoritzada pels titulars dels drets de propietat intel·lectual únicament per a usos privats emmarcats en activitats d’investigació i docència. No s’autoritza la seva reproducció amb finalitats de lucre ni la seva difusió i posada a disposició des d’un lloc aliè al servei TDX ni al Dipòsit Digital de la UB. No s’autoritza la presentació del seu contingut en una finestra o marc aliè a TDX o al Dipòsit Digital de la UB (framing). Aquesta reserva de drets afecta tant al resum de presentació de la tesi com als seus continguts. En la utilització o cita de parts de la tesi és obligat indicar el nom de la persona autora. ADVERTENCIA. La consulta de esta tesis queda condicionada a la aceptación de las siguientes condiciones de uso: La difusión de esta tesis por medio del servicio TDR (www.tdx.cat) y a través del Repositorio Digital de la UB (diposit.ub.edu) ha sido autorizada por los titulares de los derechos de propiedad intelectual únicamente para usos privados enmarcados en actividades de investigación y docencia. No se autoriza su reproducción con finalidades de lucro ni su difusión y puesta a disposición desde un sitio ajeno al servicio TDR o al Repositorio Digital de la UB. No se autoriza la presentación de su contenido en una ventana o marco ajeno a TDR o al Repositorio Digital de la UB (framing). Esta reserva de derechos afecta tanto al resumen de presentación de la tesis como a sus contenidos. En la utilización o cita de partes de la tesis es obligado indicar el nombre de la persona autora. WARNING. On having consulted this thesis you’re accepting the following use conditions: Spreading this thesis by the TDX (www.tdx.cat) service and by the UB Digital Repository (diposit.ub.edu) has been authorized by the titular of the intellectual property rights only for private uses placed in investigation and teaching activities. Reproduction with lucrative aims is not authorized nor its spreading and availability from a site foreign to the TDX service or to the UB Digital Repository. Introducing its content in a window or frame foreign to the TDX service or to the UB Digital Repository is not authorized (framing). Those rights affect to the presentation summary of the thesis as well as to its contents. In the using or citation of parts of the thesis it’s obliged to indicate the name of the author. 2018 PhD in Economics Three Essays on Agglomeration Economies in Ecuador Moisés Lenyn Obaco Álvarez Moisés Lenyn Obaco Álvarez s onomic c PhD in E PhD in Economics Thesis title: Three Essays on Agglomeration Economies in Ecuador PhD student: Moisés Lenyn Obaco Álvarez Advisors: Vicente Royuela Alessia Matano Date: July 2018 Preface and acknowledgments: This PhD thesis has been the fruit of studying at the University of Barcelona since the year 2012, which also includes my master’s in Economics at the same university. Thus, I can kindly say that I consider Barcelona as my second home. With this PhD thesis, a solid professional research experience has been gained, and not only an academic degree is obtained, but also the personal experience to be a better person. Thus, I do not feel able to express in this short writing how important and rewarding is for me to accomplish a goal that I fixed in my mind after finishing my bachelor’s Degree in economics at the University of Guayaquil (Ecuador), back in 2012. Furthermore, the outcome of this PhD thesis does not only reflect my effort. It is also the effort of a lot of people that supports me and believe in my capacity to do it. I will try to express my acknowledgments to all of them. I want to express all my acknowledgements in chronological order. As I mentioned before, this experience started in 2012 when I left my natal city, Guayaquil-Ecuador. Hence, I want to thank my family in Ecuador: my mother, Fúlvia Margarita Álvarez Romero, my father, Ignacio Obaco Guaycha, my sister, Mercy Geovanna Obaco Álvarez, and my other two brothers. I want also to thank my family in Spain: my sister, María Carmita Obaco Álvarez, and my nephews and nice. In addition, the University of Guayaquil and the Econ. Marina Mero Figueroa for all the support they gave me. From my Master, I really want to say thanks to all professors, whose background was really important to accomplish this PhD thesis. Also, I would like to mention great friends from my master, especially Daniel Daví Arderius known as the engineer. From my PhD period, I want to thank the UBeconomics team, and the Department of Econometrics, Statistics and Applied Economics. Special attention to my research group AQR (Regional Quantitative Research Group) to which I am always going to belong to. I must mention that my time as a member of AQR is one of the best experiences that a student can have. Among all the member of AQR, there are my supervisors: Vicente Royuela iii and Alessia Matano. Both are excellent advisors and extraordinary persons, who showed me that doing a PhD is more than obtaining a degree, it contributes to become a better person. ¡¡Mil gracias a los dos!! Moreover, I want to say thank to my officemate, Hoon Choi, who always was an amazing friend during my PhD period. I acknowledge the support of the Generalitat de Catalunya through the FI- scholarship for three years of funding. I am very grateful for this. Also, I would like to cite and say thank for all suggestions of all the people in workshops, seminars, and congresses in which these essays have been presented. The essay one, named as chapter two: Functional Urban Areas co- authored with Vicente Royuela and Xavier Vítores, has been presented in the XLI International Conference in Regional Science (2015), the AQR Lunch Seminar (2015), 56th ERSA Congress (2016), the Spatial Clustering Workshop (2016), the 10th STATA Users Meeting (2016), the UB Economics Workshop (2016), and the II Workshop in Economics of the University of Guayaquil (2017). The essay two, named as Agglomeration Effects and Informal Employment co-authored with Alessia Matano and Vicente Royuela, has been presented in XLII International Conference on Regional Science (2016), 57th ERSA Congress (2017), 10th Geoffrey J.D. Hewings Regional Economics Workshop / the 10th Summer Conference in Regional Science (2017), XLIII International Conference on Regional Science (2017) and in Lunch seminar of the Faculty of Spatial Sciences in the Groningen University (2018). The essay three named as Agglomeration Effects and Slums is also coauthored with Alessia Matano and Vicente Royuela. Finally, thanks to ERSA (European Regional Science Association) and AECR ( Asociación Española de Ciencia Regional ) for allowing me to improve and participate in every event that they did. I also want to thank the referees and the commission for their time and work. iv Content Chapter One: Introduction ............................................................................. 1 1.1 Agglomeration economies: context and motivation ........................ 1 1.2 Presentation of the case study: Ecuador .......................................... 5 1.3 Thesis objectives .............................................................................. 9 1.3.1 Global thesis objectives ................................................................ 9 1.3.2 Specific research objectives ......................................................... 9 1.3.3 Research limits ........................................................................... 10 References ................................................................................................ 12 Chapter two: Functional Urban Areas ........................................................ 15 2.1 Introduction ................................................................................... 15 2.2 Functional Urban Areas ................................................................. 17 2.3 Methodology .................................................................................. 21 2.4 The case study: FUAs in Ecuador and Colombia .......................... 22 2.5 Results ........................................................................................... 24 2.5.1 Sensitivity analysis ..................................................................... 30 2.5.2 Robustness checks ...................................................................... 31 2.6 Conclusions ................................................................................... 35 References ................................................................................................ 36 Appendix of Chapter Two ....................................................................... 40 A2.1 Population distribution of Colombia and Ecuador. ........................ 40 A2.2 Colombia and Ecuador description ................................................. 42 A2.3 Calibration of parameters for connecting urban cores .................... 43 A2.4 Calibration of parameters for computing hinterlands ..................... 46 A2.5 Description of urban cores and road network structure of Ecuador 52 A2.6 Fitting Google maps road distance with survey time distance. ...... 54 A2.7 Description of Ecuadorean FUAs ................................................... 56 A2.8. Robustness checks ........................................................................
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