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Why Did Spanish Regions Not Converge Before The Civil War? Agglomeration Economies And (Regional) Growth Revisited

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  • Díez-Minguela, Alfonso
  • Martínez-Galarraga, Julio
  • Tirado-Fabregat, Daniel A.

Abstract

In this paper we explore the relationship between the presence of agglomeration economies and regional economic growth in Spain during the period 1870-1930. The study allows us to revisit the existence of a trade-off between economic growth and territorial cohesion, and also to examine whether the existence of agglomeration economies could explain the upswing in regional income inequality during the early stages of development. In doing so, we present alternative indicators for agglomeration economies and estimate conditional growth regressions at province (NUTS3) level. In line with new economic geography models, agglomeration economies in a context of market integration widened regional inequality in the second half of the 19th century and hindered its reduction during the early decades of the 20th. En este artículo se analiza la existencia de una relación entre la presencia de economías de aglomeración y el crecimiento económico regional en España durante el periodo 1870-1930. El estudio permite revisitar la existencia de un trade-off entre crecimiento económico y cohesión territorial y, además, examinar si las economías de aglomeración fueron un elemento clave a la hora de explicar el incremento de la desigualdad económica regional en España a lo largo de las primeras fases del desarrollo. Para ello, se presentan diferentes indicadores de aglomeración a nivel provincial (NUTS3) que posteriormente se incluyen en la estimación de regresiones de crecimiento condicionadas. En la línea de los modelos de Nueva Geografía Económica (NEG), sugerimos que la presencia de economías de aglomeración en un contexto de integración de mercado favoreció la aparición de una causación acumulativa que amplió la desigualdad regional en la segunda mitad del siglo XIX y dificultó su reducción durante las primeras décadas del siglo XX.

Suggested Citation

  • Díez-Minguela, Alfonso & Martínez-Galarraga, Julio & Tirado-Fabregat, Daniel A., 2016. "Why Did Spanish Regions Not Converge Before The Civil War? Agglomeration Economies And (Regional) Growth Revisited," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 34(3), pages 417-448, December.
  • Handle: RePEc:cup:reveco:v:34:y:2016:i:03:p:417-448_00
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