IDEAS home Printed from https://ideas.repec.org/a/bla/presci/v99y2020i3p479-508.html
   My bibliography  Save this article

The long‐term relationship between economic development and regional inequality: South‐West Europe, 1860–2010

Author

Listed:
  • Alfonso Díez‐Minguela
  • Rafael González‐Val
  • Julio Martinez‐Galarraga
  • M. Teresa Sanchis
  • Daniel A. Tirado

Abstract

This paper analyses the long‐term relationship between regional inequality and economic development. Our data set includes information on national and regional per capita GDP for four countries: France, Italy, Portugal and Spain, compiled on a decadal basis for the period 1860–2010. Using parametric and semiparametric regressions, our results confirm the rise and fall of regional inequalities over time although in recent decades they are on the rise again. Finally, we identify structural change as being a significant transmission mechanism of the inverted‐U relationship. The arrival of technological shocks, beginning during the onset of industrialization, and the transition from agrarian to industrial economies, would explain this result. Este artículo analiza la relación a largo plazo entre la desigualdad regional y el desarrollo económico. El conjunto de datos utilizado incluye información sobre el PIB per cápita nacional y regional de cuatro países: Francia, Italia, Portugal y España, compilados por decenios para el período 1860‐2010. Mediante el uso de regresiones paramétricas y semiparamétricas, los resultados confirman el aumento y la disminución de las desigualdades regionales a lo largo del tiempo, aunque en las últimas décadas han vuelto a aumentar. Finalmente, se identifica el cambio estructural como un mecanismo significativo de transmisión de la relación de U invertida. La llegada de las perturbaciones tecnológicas, que comenzó a partir del inicio de la industrialización, y la transición de las economías agrarias a las industriales, explicarían este resultado. 本稿では地域の不公平と経済発展の長期的な関連性を分析する。今回使用するデータセットには、1860~2010年までの10年単位でまとめた、フランス、イタリア、ポルトガル、スペイン、以上の4カ国の、全国および地方の一人あたりGDPに関する情報を含んでいる。パラメトリック回帰分析およびセミパラメトリック回帰分析を行った結果から、地域の不公平は経時的に上昇、また下降しており、最近の10年単位では上昇していることが確認された。最終的には、構造的な変化が、著明な逆U字の関連性を示すトランスミッション・メカニズムとして確認された。この結果は、産業革命の始まりにおける技術的ショックの到来と農耕社会から産業経済への移行によって説明される。

Suggested Citation

  • Alfonso Díez‐Minguela & Rafael González‐Val & Julio Martinez‐Galarraga & M. Teresa Sanchis & Daniel A. Tirado, 2020. "The long‐term relationship between economic development and regional inequality: South‐West Europe, 1860–2010," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 479-508, June.
  • Handle: RePEc:bla:presci:v:99:y:2020:i:3:p:479-508
    DOI: 10.1111/pirs.12489
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/pirs.12489
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    2. Barro, Robert J & Mankiw, N Gregory & Sala-i-Martin, Xavier, 1995. "Capital Mobility in Neoclassical Models of Growth," American Economic Review, American Economic Association, vol. 85(1), pages 103-115, March.
    3. Christian Lessmann, 2009. "Fiscal Decentralization and Regional Disparity: Evidence from Cross-Section and Panel Data," Environment and Planning A, , vol. 41(10), pages 2455-2473, October.
    4. Andrés Rodríguez-Pose, 2012. "Trade and Regional Inequality," Economic Geography, Taylor & Francis Journals, vol. 88(2), pages 109-136, April.
    5. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    6. Vincenzo Verardi & Nicolas Debarsy, 2012. "Robinson's square root of N consistent semiparametric regression estimator in Stata," Stata Journal, StataCorp LP, vol. 12(4), pages 726-735, December.
    7. Lains, Pedro, 2003. "Catching up to the European core: Portuguese economic growth, 1910-1990," Explorations in Economic History, Elsevier, vol. 40(4), pages 369-386, October.
    8. Kanbur, Ravi & Wang, Yue & Zhang, Xiaobo, 2017. "The Great Chinese Inequality Turnaround," IZA Discussion Papers 10635, Institute of Labor Economics (IZA).
    9. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    10. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
    11. Julio Mart�nez-Galarraga & Joan R. Ros�s & Daniel A. Tirado, 2015. "The Long-Term Patterns of Regional Income Inequality in Spain, 1860-2000," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 502-517, April.
    12. Mitchener, Kris James & McLean, Ian W., 1999. "U.S.Regional Growth And Convergence, 1880–1980," The Journal of Economic History, Cambridge University Press, vol. 59(4), pages 1016-1042, December.
    13. Vincenzo Verardi & Nicolas Debarsy, 2012. "Robinson's square root of N consistent semiparametric regression estimator in Stata," Stata Journal, StataCorp LP, vol. 12(4), pages 726-735, December.
    14. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    15. Andrés Rodríguez-Pose & Roberto Ezcurra, 2010. "Does decentralization matter for regional disparities? A cross-country analysis," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 619-644, September.
    16. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
    17. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2011. "The rise and fall of spatial inequalities in France: A long-run perspective," Explorations in Economic History, Elsevier, vol. 48(2), pages 243-271, April.
    18. Broadberry,Stephen & O'Rourke,Kevin H., 2010. "The Cambridge Economic History of Modern Europe," Cambridge Books, Cambridge University Press, number 9780521882033, April.
    19. Roberto Ezcurra & Andr�s Rodr�guez-Pose, 2014. "Trade Openness and Spatial Inequality in Emerging Countries," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 162-182, June.
    20. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 613-646.
    21. Lessmann, Christian, 2014. "Spatial inequality and development — Is there an inverted-U relationship?," Journal of Development Economics, Elsevier, vol. 106(C), pages 35-51.
    22. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    23. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-954, July.
    24. Lant Pritchett, 1997. "Divergence, Big Time," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 3-17, Summer.
    25. Ravi Kanbur & Xiaobo Zhang, 2005. "Fifty Years of Regional Inequality in China: a Journey Through Central Planning, Reform, and Openness," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 87-106, February.
    26. Alicia Gómez-Tello & Alfonso Díez-Minguela & Julio Martinez-Galarraga & Daniel A. Tirado, 2019. "Regional prices in early twentieth-century Spain: a country-product-dummy approach," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(2), pages 245-276, May.
    27. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
    28. Barrios, Salvador & Strobl, Eric, 2009. "The dynamics of regional inequalities," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 575-591, September.
    29. Desmet, Klaus & Henderson, J. Vernon, 2015. "The Geography of Development Within Countries," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.),Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1457-1517, Elsevier.
    30. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    31. Matthieu Crozet & Pamina Koenig-Soubeyran, 2004. "Trade liberalization and the internal geography of countries," Chapters, in: Jean-Louis Mucchielli & Thierry Mayer (ed.),Multinational Firms’ Location and the New Economic Geography, chapter 5, Edward Elgar Publishing.
    32. Nicholas Crafts, 2005. "Regional Gdp In Britain, 1871–1911: Some Estimates," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 54-64, February.
    33. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    34. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate of the Effect of Common Currencies on Trade and Income," The Quarterly Journal of Economics, Oxford University Press, vol. 117(2), pages 437-466.
    35. Emanuele Felice & Giovanni Vecchi, 2013. "Italy’s Growth and Decline, 1861-2011," CEIS Research Paper 293, Tor Vergata University, CEIS, revised 11 Oct 2013.
    36. Frank Geary & Tom Stark, 2002. "Examining Ireland"s Post--famine Economic Growth Performance," Economic Journal, Royal Economic Society, vol. 112(482), pages 919-935, October.
    37. Broadberry,Stephen & O'Rourke,Kevin H. (ed.), 2010. "The Cambridge Economic History of Modern Europe 2 Volume Hardback Set," Cambridge Books, Cambridge University Press, number 9780521199179, April.
    38. John A. List & Craig A. Gallet, 1999. "The Kuznets Curve: What Happens After the Inverted‐U?," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 200-206, June.
    39. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    40. Rosés, Joan Ramón & Martínez-Galarraga, Julio & Tirado, Daniel A., 2010. "The upswing of regional income inequality in Spain (1860-1930)," Explorations in Economic History, Elsevier, vol. 47(2), pages 244-257, April.
    41. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
    42. Elisenda Paluzie, 2001. "articles: Trade policy and regional inequalities," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(1), pages 67-85.
    43. Durlauf, Steven N., 2001. "Manifesto for a growth econometrics," Journal of Econometrics, Elsevier, vol. 100(1), pages 65-69, January.
    44. Robert E. Lucas, 2000. "Some Macroeconomics for the 21st Century," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 159-168, Winter.
    45. Alberto F. Ades & Edward L. Glaeser, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 195-227.
    46. Kerstin Enflo & Martin Henning & Lennart Schön, 2014. "Swedish regional GDP 1855–2000: Estimations and general trends in the Swedish regional system," Research in Economic History, in: Christopher Hanes & Susan Wolcott (ed.),Research in economic history, volume 30, pages 47-89, Emerald Publishing Ltd.
    47. Emanuele Felice, 2011. "Regional value added in Italy, 1891–2001, and the foundation of a long‐term picture," Economic History Review, Economic History Society, vol. 64(3), pages 929-950, August.
    48. Badia-Miró, Marc & Guilera, Jordi & Lains, Pedro, 2012. "Regional Incomes in Portugal: Industrialisation, Integration and Inequality, 1890-1980," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 30(2), pages 225-244, September.
    49. Frank Geary & Tom Stark, 2015. "Regional GDP in the UK, 1861–1911: new estimates," Economic History Review, Economic History Society, vol. 68(1), pages 123-144, February.
    50. Kim, Sukkoo, 1998. "Economic Integration and Convergence: U.S. Regions, 1840–1987," The Journal of Economic History, Cambridge University Press, vol. 58(3), pages 659-683, September.
    51. Georg Hirte & Christian Lessmann, 2014. "Trade, Integration, and Interregional Inequality," CESifo Working Paper Series 4799, CESifo.
    52. Guillaume Bazot, 2014. "Interregional Inequalities, Convergence, and Growth in France from 1840 to 1911," Annals of Economics and Statistics, GENES, issue 113-114, pages 309-345.
    53. Alfonso Diez-Minguela & Julio Martinez-Galarraga & Daniel A. Tirado-Fabregat, 2018. "Regional Inequality in Spain," Palgrave Studies in Economic History, Palgrave Macmillan, number 978-3-319-96110-1, December.
    54. Giannetti, Mariassunta, 2002. "The effects of integration on regional disparities: Convergence, divergence or both?," European Economic Review, Elsevier, vol. 46(3), pages 539-567, March.
    55. Jutta Bolt & Jan Luiten Zanden, 2014. "The Maddison Project: collaborative research on historical national accounts," Economic History Review, Economic History Society, vol. 67(3), pages 627-651, August.
    56. Broadberry,Stephen & O'Rourke,Kevin H. (ed.), 2010. "The Cambridge Economic History of Modern Europe 2 Volume Paperback Set," Cambridge Books, Cambridge University Press, number 9780521128247, April.
    57. Ben Gardiner & Ron Martin & Peter Tyler, 2011. "Does spatial agglomeration increase national growth? some evidence from Europe," Journal of Economic Geography, Oxford University Press, vol. 11(6), pages 979-1006, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Elephant (-Shaped Curve) in the Room: Economic Development and Regional Inequality in South-West Europe
      by missiaia in NEP-HIS blog on 2018-03-30 03:42:16

    More about this item

    JEL classification:

    • N9 - Economic History - - Regional and Urban History
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:99:y:2020:i:3:p:479-508. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.