The article analyses the evolution of the differences in economic conditions among Spanish regions from the perspective provided by the recent advances made in economic growth empirics. Although convergence is usually established in terms of Gross Value Added (GVA) per capita, in the case of Spain it is of special interest to break it down into three separate elements: activity rate, employment rate, and productivity of labour. Regional differences in unemployment rates, which persist for long periods of time, are identified as a force against convergence. After describing the distinction between conditional and non conditional convergence, the paper considers the role played by the productive structure in establishing regional differences, with special reference to the weight of the agricultural sector and the role of public capital in conditional convergence. Finally, conditional and non conditional convergence equations are estimated for the 17 Spanish regions for the 1955 1991 period. The paper concludes that the convergence process is concentrated in the first half of the period (1955 1979) and that both, the productive structure and public capital, had a significant role in the convergence process.
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
15869.
Length: Date of creation: 1995 Date of revision:
1995 Publication status: Published in Entrepreneurship and Regional Development 4.7(1995): pp. 309-327 Handle: RePEc:pra:mprapa:15869
Find related papers by JEL classification: H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
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