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Competition, complementarity and increasing disparities among the Regions of Spain and Portugal

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  • Sandy Dall’erba

Abstract

The aim of this paper is to investigate the role of regional competition and complementarity on increasing internal disparities within the Iberian peninsula over the last two decades. Competitive and complementary dynamics among the regions of Spain and Portugal rely on their intense trade, which is based on a combination of their comparative advantages, increasing returns and lowered transportation costs. In that purpose, we apply first the DENDRINOS-SONIS model (1988) to the Gross Domestic Product of the regions of Spain and Portugal. Essentially, the model implies that growth in one region takes place at the expense of at least one other. The results show significant complementary relationships between Este, Centro and Sur ; and highlight the strong influence of Este and Madrid on all the regions. Since both countries are major beneficiaries of European cohesion efforts, we extend the application to the key sectors of regional development policies : agriculture, energy, non-market services, transportation and telecommunications. The nature of the relationships that are revealed encourages policies supporting the three first sectors but not the transportation and telecommunication sector. Classification JEL : O52, R11, R15.

Suggested Citation

  • Sandy Dall’erba, 2004. "Competition, complementarity and increasing disparities among the Regions of Spain and Portugal," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 311-330.
  • Handle: RePEc:cai:rerarc:reru_042_0311
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    References listed on IDEAS

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    1. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, March.
    2. Philippe Martin, 2000. "The Role of Public Policy in the Process of Regional Convergence," Sciences Po publications info:hdl:2441/9328, Sciences Po.
    3. Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Wiley Blackwell, vol. 21(6), pages 757-774, August.
    4. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
    5. Roger Vickerman & Klaus Spiekermann & Michael Wegener, 1999. "Accessibility and Economic Development in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(1), pages 1-15.
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    Cited by:

    1. Yiannis Kamarianakis & Vagelis Kaslis, 2005. "Geographical competition-complementarity relationships between Greek regional economies," ERSA conference papers ersa05p552, European Regional Science Association.
    2. Sandy Dall'erba & Julie Le Gallo, 2003. "Geographic Spillover Effects of Regional Funds and their Impact on the European Convergence Process over 1989-1999," ERSA conference papers ersa03p136, European Regional Science Association.

    More about this item

    Keywords

    region; inequality; competition; complementarity;

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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