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On the determinants of convergence and divergence processes in Spain

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Author Info

  • Leone Leonida

    ()
    (Università Degli Studi Della Calabria)

  • Daniel Montolio

    ()
    (Universitat de Barcelona)

Abstract

This paper studies the dynamics of convergence and divergence in Spain over the period 1965-1995. We analyse the evolution of the per capita income distribution across Spanish provinces and estimate the effects on this evolution of factors such as private, human and public capital, and an industrialisation index. We show that after a period of absolute convergence over the 1960s and early 1970s, the provinces polarised (club convergence) during the 1980s. This polarisation process preceded a period of divergence among clubs, which began to appear during the 1990s. By estimating counterfactual densities, we show that private capital accumulation and education at graduate level can account for a relevant fraction of the actual dispersion and polarisation of incomes. We also find that public capital has reduced inequalities, especially in recent years, through redistribution of incomes rather than by increasing productivity. (Copyright: Fundación SEPI)

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Bibliographic Info

Article provided by Fundación SEPI in its journal Investigaciones Economicas.

Volume (Year): 28 (2004)
Issue (Month): 1 (January)
Pages: 89-121

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Handle: RePEc:iec:inveco:v:28:y:2004:i:1:p:89-121

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Related research

Keywords: convergence; factors of production; industrialisation; non-parametric density estimation;

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References

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Citations

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Cited by:
  1. Leone Leonida, . "On the Effects of Industrialization Processes on Growth and Convergence Dynamics: Evidence from Italian Regions," Discussion Papers 04/15, Department of Economics, University of York.
  2. Roberto Leon Gonzalez & Daniel Montolio Estivill, 2003. "Growth, Convergence and Public Investment. A Bayesian Model Averaging Approach," Working Papers in Economics 106, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Catriona Purfield, 2006. "Mind the Gap," IMF Working Papers 06/103, International Monetary Fund.
  4. Giorgio Canarella & Stephen Pollard, 2006. "Distribution dynamics and convergence in Latin America: A non-parametric analysis," International Review of Economics, Springer, vol. 53(1), pages 68-95, March.

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