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The best known and used indicator of the economy is the Gross Domestic Product. Better than any other, it expresses many dimensions in figures and has a very important role in the decisions-in economic matters. This Academic Note and others that will follow, will try to explain in accessible terms, how it is obtained, what it represents and how it should be interpreted. The perspective adopted in this Note is that as an indicator it maintains its importance and validity and what is required is to develop new economic metrics so as not to exhaust ourselves on the issue of growth, which is a way in which we understand insufficiently the economic development.

The Peruvian economy has been growing steadily over the past 15 years. Check if the departments have achieved a convergence process either to a single steady state or its own steady state would be an indicator to verify a process of inclusion in the growth process. Basic features of the national census are such that there are a number of departments not reach certain minimum criteria for subsistence and therefore are in a clear process of exclusion. From this perspective, the concept of convergence may provide some light on this situation. If convergence exists, it is likely that this convergence is carried into poverty or exclusion or to the opposite side. In this paper, per capita GDP of each department relative to the national average is used to apply various statistical tests in order to verify the existence of stochastic convergence and β-convergence as well. Further, the application of a new methodology for identifying clubs convergence is used. The results of the application of unit root tests without structural change indicate the absence of stochastic convergence. However, incorporating the presence of endogenous breaks, the result is reversed for all departments. The implementation of a statistical test robust to the presence of I (0) or I (1) errors allows inference from estimates of the intercepts and growth rates before and after a structural break. The results indicate that all departments have experienced a structural break in the period 1970-2010. The analysis of the intercepts and growth rates before and after the breakpoint suggests that the departments that have undergone a process of catching-up and those who have undergone a process of lagging-behind. In some cases this process of lagging-behind has been given to levels below the national average while other departments have remained above the national average. On the other hand, besides rejecting absolute convergence hypothesis, we found three clubs of convergence. There are also two departments (Apurimac and Huancavelica) that are not part of any club convergence and appear disconnected from the rest of the country and stuck to GDP per capita average.

3. Producción

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