Regional Convergence in Productivity and Productive Structure: The Spanish Case

Abstract

This article analyzes the evolution of regional differences in Spain and emphasizes the importance of a disaggregate analysis at a sectoral level. In particular, the authors observe convergence in productivity at the aggregate regional level but not at the sectoral level. Aggregate convergence seems to be due to the gradual homogenization of regional productive structures. This result may modify some of the conclusions drawn in the recent literature regarding the mechanisms that have generated convergence. In addition, we examine the so-called beta convergence hypothesis using a fixed-effects model. The results show the importance of regional specificity captured by the fixed effects and have implications that are very different from those of beta convergence analyses with cross-section data.

The impact of convergence in the industrial mix on regional comparative growth: Empirical evidence from the French case

“…Convergence is rarely found at a disaggregate level. From a theoretical point of view, such structural effects are not often highlighted as convergence or divergence factors in the literature (Paci and Pigliaru 1999;Cuadrado et al 1999;Esteban 2000;Landesmann and Stehrer 2001). However, Echevarria (1997) shows that a modified version of the Solowian framework can generate such phenomena and more generally can link growth and structural change.…”

Structural convergence of European countries

“…Some work has been done regarding regional convergence (e.g. Cuadrado-Roura et al 1999, Guerrieri and Iammarino 2003, Longhi and Musolesi 2007; others investigate the interrelationship between structural convergence and income convergence (Wacziarg 2001, Imbs andWacziarg 2003), productivity convergence (Fagerberg 2000, Gugler andPfaffermayr 2004), and monetary integration (Brülhart 1998). Others again focus on the economic catch-up and structural assimilation of countries, e.g.…”

Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis

“…Islam (1995) proposed to set up convergence analyses in a panel data framework where it is possible to control for individual-specific, time invariant characteristics of countries (like the initial level of technology) using fixed effects. Panel data convergence studies using the least squares dummy variable (LSDV) procedure (for countries Knight et al 1993, Islam 1995, for regions de la Fuente 1996, Cuadrado-Roura et al 1999 found extremely fast convergence rates of up to 20 per cent. More recent studies account for the fact dynamic panel data models -as panel convergence models inevitably are -require a different estimation technique than the LSDV estimator.…”