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Productivity growth and its determinants in the Spanish provinces: Do within-regions differences matter?

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  • Pérez, María
  • Orea, Luis

Abstract

We analyze in this paper the productivity growth of the Spanish provinces and its determinants during the period 1986-2006 in order to ascertain whether the heterogeneity in total factor productivity between regions is, as expected, higher than between provinces belonging to the same region. If this is the case, results from previous studies that used regional data can be applied to provinces without losing generality, and multi-province regions can be used as proper references for one province regions. Our analysis suggests, however, that previous studies that used regional variables may well be subject to specification errors. Moreover, our results suggests that, in order to understand better the productivity growth patterns in Spain, data at province level should be used, and, since this disaggregation is not available for all relevant variables, the private and public institutions that elaborate the traditional regional variables for the Spanish economy should make an effort in the future in order to disaggregate the actual regional variables into variables measured at the province level.

Suggested Citation

  • Pérez, María & Orea, Luis, 2011. "Productivity growth and its determinants in the Spanish provinces: Do within-regions differences matter?," Efficiency Series Papers 2011/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
  • Handle: RePEc:oeg:wpaper:2011/02
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    File URL: https://www.unioviedo.es/oeg/ESP/esp_2011_02.pdf
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    References listed on IDEAS

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    1. Greene, William & Orea, Luis & Wall, Alan, 2010. "Stochastic Frontiers using a Fixed-effect Vector Decomposition Approach with an Application to ICT and Regional Productivity in Spain," Efficiency Series Papers 2010/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Elena Huergo Orejas & Lourdes Moreno Martín, 2004. "La innovación y el crecimiento de la productividad en España," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 56(02), pages 208-231.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    4. Matilde Mas & Joaquin Maudos & Francisco Perez & Ezequiel Uriel, 1996. "Infrastructures and Productivity in the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 641-649.
    5. Ana Martín-Marcos & Jordi Jaumandreu, 2004. "Entry, exit and productivity growth: Spanish manufacturing during the eighties," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(3), pages 211-226, October.
    6. Plümper, Thomas & Troeger, Vera E., 2007. "Efficient Estimation of Time-Invariant and Rarely Changing Variables in Finite Sample Panel Analyses with Unit Fixed Effects," Political Analysis, Cambridge University Press, vol. 15(02), pages 124-139, March.
    7. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
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    10. Mercedes Gumbau Albert & Joaquín Maudos Villarroya & Pedro Cantos, 2002. "Transport Infrastructures And Regional Growth: Evidence Of The Spanish Case," Working Papers. Serie EC 2002-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    11. Jorge Rodríguez-Vález & Antonio Álvarez Pinilla & Esteban Fernández Vázquez & Carlos Arias Sampedro, 2009. "La contribución de las infraestructuras a la producción: estimación por máxima entropía," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 17(2), pages 76-96, Autumn.
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    More about this item

    Keywords

    productivity growth; within-region inequalities; R&D; human capital;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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