Structural and Spatial Aspects of Regional Inequality in Spain: Growth Rates, Spatial Gradients, and Regional Policies. University of Illinois Working Paper, Vol. 2, No. 2

Donaghy, Kieran P. and Dall'Erba, Sandy. (2003) Structural and Spatial Aspects of Regional Inequality in Spain: Growth Rates, Spatial Gradients, and Regional Policies. University of Illinois Working Paper, Vol. 2, No. 2. [Working Paper]

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Abstract

In this paper we examine differences in Spain’s regional economies and how these differences might be taken into account in designing policies to reduce regional inequality. Toward this end, we first set out a basic model of regional economic growth and develop time series corresponding to the theoretical variables of this model. We estimate from these series the model’s parameters in the case of each of the regions of Spain to analyze structural differences in the nature of the economic growth processes at work. Making use of an approximation employed in projection methods, we also compute spatial gradients of growth rates for the regions of Spain to examine how these rates are changing through time as one moves across space relative to a reference location.

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