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A test of the market potential equation in Spain

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  • Elisenda Paluzie
  • Jordi Pons
  • Daniel Tirado

Abstract

In this article, we examine the relationship between regional wages in Spain and the market potential of these regions in the period 1955 to 1995. We demonstrate the existence of a spatial wage structure, in which wages fall with increasing distance from the highest income regions. This result strengthens the hypothesis that agglomerative forces were operating in Spain during the second half of the twentieth century.

Suggested Citation

  • Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2009. "A test of the market potential equation in Spain," Applied Economics, Taylor & Francis Journals, vol. 41(12), pages 1487-1493.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1487-1493
    DOI: 10.1080/00036840601032169
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    References listed on IDEAS

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    1. Jordi Pons & Daniel Tirado & Elisenda Paluzie, 2002. "Integration of markets and industrial concentration: evidence from Spain, 1856-1907," Applied Economics Letters, Taylor & Francis Journals, vol. 9(5), pages 283-287.
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    8. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    9. Sukkoo Kim, 1995. "Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U. S. Regional Manufacturing Structure, 1860–1987," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 881-908.
    10. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2002. "The final frontier? Border effects and German regional wages," HWWA Discussion Papers 197, Hamburg Institute of International Economics (HWWA).
    11. S. Brakman & H Garretsen & M. Schramm, 2003. "The Strategic Bombing of German Cities during World War II and its Impact for Germany," Working Papers 03-09, Utrecht School of Economics.
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    15. repec:hhs:iuiwop:430 is not listed on IDEAS
    16. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2002. "The Final Frontier? Border Effects and German Regional Wages," Discussion Paper Series 26233, Hamburg Institute of International Economics.
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    Cited by:

    1. Rafael González-Val & Daniel A. Tirado-Fabregat & Elisabet Viladecans-Marsal, 2017. "Market potential and city growth: Spain 1860–1960," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(1), pages 31-61, January.
    2. Rafael González-Val & Daniel A. Tirado-Fabregat & Elisabet Viladecans-Marsal, 2017. "Market potential and city growth: Spain 1860–1960," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(1), pages 31-61, January.

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