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.