Skip to main content
×
Home
    • Aa
    • Aa

WHY DID SPANISH REGIONS NOT CONVERGE BEFORE THE CIVIL WAR? AGGLOMERATION ECONOMIES AND (REGIONAL) GROWTH REVISITED*

  • Alfonso Díez-Minguela (a1), Julio Martínez-Galarraga (a1) and Daniel A. Tirado-Fabregat (a1)
Abstract
ABSTRACT

In this paper we explore the relationship between the presence of agglomeration economies and regional economic growth in Spain during the period 1870-1930. The study allows us to revisit the existence of a trade-off between economic growth and territorial cohesion, and also to examine whether the existence of agglomeration economies could explain the upswing in regional income inequality during the early stages of development. In doing so, we present alternative indicators for agglomeration economies and estimate conditional growth regressions at province (NUTS3) level. In line with new economic geography models, agglomeration economies in a context of market integration widened regional inequality in the second half of the 19th century and hindered its reduction during the early decades of the 20th.

Copyright
Footnotes
Hide All

Authors thank three anonymous referees and participants at Dublin FRESH meeting 2014 and 7th Iberometrics Conference for their comments. Authors acknowledge financial support from the MINECO project ECO2012-39169-CO3-02.

Área de Historia e Instituciones Económicas, Departamento de Análisis Económico, Facultad de Economía, Universitat de València, Avda. Tarongers, s/n. 46022 Valencia. alfonso.diez@uv.es, julio.martinez-galarraga@uv.es, daniel.tirado@uv.es

Footnotes
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

M. Arellano , and S. Bond (1991): «Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations». The Review of Economic Studies 58 (2), pp. 277-297.

M. Arellano , and O. Bover (1995): «Another Look at the Instrumental Variable Estimation of Error-Components Models». Journal of Econometrics 68 (1), pp. 29-51.

M. Badia-Miró ; J. Guilera , and P. Lains (2011): «Regional Incomes in Portugal: Industrialisation, Integration and Inequality, 1890-1980». Revista de Historia Económica/Journal of Iberian and Latin American Economic History 30 (2), pp. 225-244.

R. Baldwin , and P. Martin (2004): «Agglomeration and Regional Growth», in J. V. Henderson, and J. F. Thisse (eds), Handbook of Regional and Urban Economics, vol. 4, Ch. 60. Amsterdam: Elsevier, pp. 2671-2711.

R. Blundell , and S. Bond (1998): «Initial Conditions and Moment Restrictions in Dynamic Panel Data Models». Journal of Econometrics 87 (1), pp. 115-143.

R. Blundell , and S. Bond (2000): «GMM Estimation with Persistent Panel Data: An Application to Production Functions». Econometrics Reviews 19 (3), pp. 321-340.

M. Brülhart , and F. Sbergami (2009): «Agglomeration and Growth: Cross-Country Evidence». Journal of Urban Economics 65 (1), pp. 48-63.

E. Buyst (2012): «Continuity and Change in Regional Disparities in Belgium During the Twentieth Century». Journal of Historical Geography 37 (3), pp. 329-337.

A. Ciccone (2002): «Agglomeration Effects in Europe». European Economic Review 46 (2), pp. 213-227.

P. P. Combes ; M. Lafourcade , J. F. Thisse , and J. C. Toutain (2011): «The Rise and Fall of Spatial Inequalities in France: A Long-Run Perspective». Explorations in Economic History 48 (2), pp. 243-271.

N. F. R. Crafts (2005): «Regional GDP in Britain, 1871-1911: Some Estimates». Scottish Journal of Political Economy 52 (1), pp. 54-64.

D. R. Davis , and D. E. Weinstein (1999): «Economic Geography and Regional Production Structure: An Empirical Investigation». European Economic Review 43 (2), pp. 379-407.

D. R. Davis , and D. E. Weinstein (2003): «Market Access, Economic Geography and Comparative Advantage: An Empirical Test». Journal of International Economics 59 (1), pp. 1-23.

K. Enflo , and J. R. Rosés (2015): «Coping with Regional Inequality in Sweden: Structural Change, Migrations, and Policy, 1860-2000». Economic History Review 68 (1), pp. 191-217.

E. Felice (2011): «Regional Value Added in Italy, 1891-2001, and the Foundation of a Long-Term Picture». Economic History Review 64 (3), pp. 929-950.

B. Gardiner ; R. Martin , and P. Tyler (2011): «Does Spatial Agglomeration Increase National Growth? Some Evidence from Europe». Journal of Economic Geography 11 (6), pp. 979-1006.

F. Geary , and T. Stark (2002): «Examining Ireland’s Post-Famine Economic Growth Performance». Economic Journal 112 (482), pp. 919-935.

F. Geary , and T. Stark (2015): «Regional GDP in the UK, 1861-1911: New Estimates». Economic History Review 68 (1), pp. 123-144.

D. Gollin (2002): «Getting Income Shares Right». Journal of Political Economy 110 (21), pp. 458-474.

L. P. Hansen (1982): «Large Sample Properties of Generalized Method of Moments Estimators». Econometrica 50 (4), pp. 1029-1054.

V. Henderson (2003): «The Urbanization Process and Economic Growth: The So-What Question». Journal of Economic Growth 8 (1), pp. 47-71.

M. Henning ; K. Enflo , and F. N. G. Andersson (2011): «Trends and Cycles in Regional Economic Growth: How Spatial Differences Shaped the Swedish Growth Experience from 1860-2009». Explorations in Economic History 48 (4), pp. 538-555.

A. Herranz (2007): «Infrastructure Investment and Spanish Economic Growth, 1850-1935». Explorations in Economic History 44 (3), pp. 452-468.

S. Kim (1995): «Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U.S. Regional Manufacturing Structure, 1860-1987». Quarterly Journal of Economics 110 (4), pp. 881-908.

P. Krugman (1991): «Increasing Returns and Economic Geography». Journal of Political Economy 99 (3), pp. 483-499.

P. Martin , and G. I. P. Ottaviano (1999): «Growing Locations: Industry Location in a Model of Endogenous Growth». European Economic Review 43 (2), pp. 281-302.

J. Martinez-Galarraga (2012): «The Determinants of Industrial Location in Spain, 1856-1929». Explorations in Economic History 49 (2), pp. 255-275.

J. Martinez-Galarraga ; E. Paluzie , J. Pons , and D. A. Tirado (2008): «Agglomeration and Labour Productivity in Spain Over the Long Term». Cliometrica 2 (3), pp. 195-212.

L. Prados De La Escosura (2008): «Inequality, Poverty and the Kuznets Curve in Spain, 1850-2000». European Review of Economic History 12 (3), pp. 287-324.

D. Roodman (2009a): «A Note on the Theme of Too Many Instruments». Oxford Bulletin of Economics and Statistics 71 (1), pp. 135-158.

J. R. Rosés (2003): «Why Isn’t the Whole of Spain Industrialized? New Economic Geography and Early Industrialization, 1797-1910». The Journal of Economic History 63 (4), pp. 995-1022.

J. R. Rosés ; J. Martinez-Galarraga , and D. A. Tirado (2010): «The Upswing of Regional Income Inequality in Spain (1860-1930)». Explorations in Economic History 47 (2), pp. 244-257.

J. R. Rosés , and B. Sánchez-Alonso (2004): «Regional Wage Convergence in Spain, 1850-1930». Explorations in Economic History 41 (4), pp. 404-425.

X. Sala-i-Martin ; G. Doppelhofer , and R. I. Miller (2004): «Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach». American Economic Review 94 (4), pp. 813-835.

D. A. Tirado ; E. Paluzie , and J. Pons (2002): «Economic Integration and Industrial Location: The Case of Spain Before World War I». Journal of Economic Geography 2 (3), pp. 343-363.

J. G. Williamson (1965): «Regional Inequality and the Process of National Development: A Description of the Patterns». Economic Development and Cultural Change 13 (4, Part II), pp. 3-84.

F. Windmeijer (2005): «A Finite Sample Correction for the Variance of Linear Efficient Two-Step GMM Estimators». Journal of Econometrics 126 (1), pp. 25-51.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Revista de Historia Economica - Journal of Iberian and Latin American Economic History
  • ISSN: 0212-6109
  • EISSN: 2041-3335
  • URL: /core/journals/revista-de-historia-economica-journal-of-iberian-and-latin-american-economic-history
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords:

Type Description Title
WORD
Supplementary Materials

Díez-Minguela supplementary material
Appendix Tables A1-A3

 Word (168 KB)
168 KB

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 4
Total number of PDF views: 80 *
Loading metrics...

Abstract views

Total abstract views: 186 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 23rd June 2017. This data will be updated every 24 hours.