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Market Potential and Regional Economic Growth in Spain, 1860-1930

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  • Rafael González-Val
  • Julio Martínez-Galarraga
  • Daniel A. Tirado-Fabregat

Abstract

In this paper we employ parametric and nonparametric techniques to analyse the effect of the changes registered on regional market potential on the growth of Spanish regions during the period 1860-1930. The study of the Spanish experience during these years conforms a case study that allows analyzing whether the construction of new transport infrastructure, as well as the changes in trade policy, that affected the relative market potential of the Spanish regions, ended up shaping regional growth trajectories. In order to carry out the analysis we make use of new evidence on regional inequality patterns in the long term based on recent estimations of per capita GDP for NUTS III Spanish regions (provinces) and an a la Harris measure of regional market potential that takes into account the economic distance between territories according to the changes registered in transport networks, the variations in the actual transport costs and the tariff policy followed over the period. Our results show a clear positive influence of market potential on regional economic growth, particularly along the years 1900-1930.

Suggested Citation

  • Rafael González-Val & Julio Martínez-Galarraga & Daniel A. Tirado-Fabregat, 2014. "Market Potential and Regional Economic Growth in Spain, 1860-1930," ERSA conference papers ersa14p635, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa14p635
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    Cited by:

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    2. Gregori Galofre-Vila & Maria Gomez-Leon, 2021. "Provincial health inequalities in Spain since 1860," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 2103, Departamento de Economía - Universidad Pública de Navarra.
    3. del Río, Fernando & Lores, Francisco-Xavier, 2023. "Accounting for Spanish economic development 1850-2019," MPRA Paper 116025, University Library of Munich, Germany.
    4. Nielsen, Hana, 2021. "Coal and Sugar: The Black and White Gold of Czech Industrialization (1841-1863)," Lund Papers in Economic History 229, Lund University, Department of Economic History.
    5. del Río, Fernando & Lores, Francisco-Xavier, 2023. "Accounting for spanish economic development 1850–2019," Economic Modelling, Elsevier, vol. 121(C).
    6. Rafael González-Val & Pau Insa-Sánchez & Julio Martinez-Galarraga & Daniel A. Tirado-Fabregat, 2022. "Market access, the skill premium and human capital in Spain (1860-1930)," Working Papers 0229, European Historical Economics Society (EHES).

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    More about this item

    Keywords

    market potential; New Economic Geography; regional growth; economic history;
    All these keywords.

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • 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
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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