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Spatial Effects On Provincial Convergence And Income Distribution In Spain: 1985–2003

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  • ADOLFO MAZA
  • JOSÉ VILLAVERDE

Abstract

This paper examines the role of space (geographical location) in provincial income convergence and income distribution in Spain. To do that, and after showing the presence of spatial dependence in our income data, the paper compares two sample series: actual versus filtered (spaceless) data. The comparison of these two series comes out to two important differences: first, the speed of convergence is higher and, second, the income distribution is more concentrated (less biased) around the national average with filtered data. Besides this, the paper also shows that geographical location particularly explains relative income improvement in provinces with per capita income slightly above average. These results confirm that, as for Spain, space does indeed matter.

Suggested Citation

  • Adolfo Maza & José Villaverde, 2009. "Spatial Effects On Provincial Convergence And Income Distribution In Spain: 1985–2003," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(3), pages 316-331, July.
    • Handle: RePEc:bla:tvecsg:v:100:y:2009:i:3:p:316-331
    DOI: 10.1111/j.1467-9663.2009.00519.x
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    3. Maza, Adolfo & Hierro, María & Villaverde, José, 2012. "Income distribution dynamics across European regions: Re-examining the role of space," Economic Modelling, Elsevier, vol. 29(6), pages 2632-2640.
    4. Montañés, Antonio & Olmos, Lorena & Reyes, Marcelo, 2018. "Has the Great Recession affected the convergence process? The case of Spanish provinces," Economic Modelling, Elsevier, vol. 68(C), pages 360-371.
    5. Up Lim, 2016. "Regional income club convergence in US BEA economic areas: a spatial switching regression approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 273-294, January.
    6. Up Lim, 2016. "Regional income club convergence in US BEA economic areas: a spatial switching regression approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 273-294, January.

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