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Public Capital and Productive Efficiency in the Spanish Regions (1964 1989)

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  • Maudos, Joaquin
  • Mas, Matilde
  • Pérez, Francisco
  • Uriel, Ezequiel

Abstract

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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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15869.

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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

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Keywords: Regional Convergence; Public Capital;

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References

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  1. Steven N. Durlauf & Paul A. Johnson, 1992. "Local Versus Global Convergence Across National Economies," NBER Working Papers 3996, National Bureau of Economic Research, Inc.
  2. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 163, Cowles Foundation for Research in Economics, Yale University.
  3. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  4. Ezequiel Uriel Jiménez & Francisco Pérez García & Matilde Mas Ivars & Joaquín Maudos Villarroya, 1993. "Capital Público Y Productividad De La Economía Espanola," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 1993-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 407-37, May.
  6. Ezequiel Uriel Jiménez & Francisco Pérez García & Matilde Mas Ivars & Joaquín Maudos Villarroya, 1993. "Disparidades Regionales Y Convergencia En Las Cc.Aa. Españolas," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 1993-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. Ezequiel Uriel Jiménez & Francisco Pérez García & Matilde Mas Ivars, 1993. "Dotaciones Del Capital Público Y Su Distribución Regional En España," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 1993-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  8. Azariadis, Costas & Drazen, Allan, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(2), pages 501-26, May.
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