SUMMARY
According to Growth Theory, different economies converge to the same steadystate
if saving rates, depreciation and population growth are controlled.
Controlling for other variables, convergence will be conditional and not absolute.
If the considered economies are regions of the same country, in long-run all of
them should share the same steady-state. This paper evaluates if convergence
in Peru is conditioned by geographic variables. Evidence suggests that, caused
by geographical factors, Peruvian regions follow different dynamics and that
there are at least two economic regimes that converge to different steady-states.