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

Author

Listed:
  • Alfonso Díez-Minguela

    (Universitat de València)

  • Rafael González-Val

    (Universidad de Zaragoza, IEB)

  • Julio Martinez-Galarraga

    (Universitat de València)

  • M. Teresa Sanchis

    (Universitat de València)

  • Daniel A. Tirado

    (Universitat de València)

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. Data are compiled on a decadal basis for the period 1860-2010, thus enabling the evolution of regional inequalities throughout the whole process of economic development to be examined. Using parametric and semiparametric regressions, our results confirm the rise and fall of regional inequalities over time, i.e. the existence of an inverted-U curve since the early stages of modern economic growth, as the Williamson hypothesis suggests. We also find evidence that, in recent decades, regional inequalities have been on the rise again. As a result, the long-term relationship between national economic development and spatial inequalities describes an elephant-shaped curve.

Suggested Citation

  • Alfonso Díez-Minguela & Rafael González-Val & Julio Martinez-Galarraga & M. Teresa Sanchis & Daniel A. Tirado, 2017. "The long-term relationship between economic development and regional inequality: South-West Europe, 1860-2010," Working Papers 0119, European Historical Economics Society (EHES).
    • Handle: RePEc:hes:wpaper:0119
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    Blog mentions

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    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

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    More about this item

    Keywords

    Economic development; regional inequalities; Kuznets curve; Europe; economic history;
    All these keywords.

    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

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