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Published on Thursday, October 31, 2019

Regional Inequality

Regions with less income should have the highest growth rates. Capital is scarce in the more disadvantaged regions, which means higher profitability. In theory, this should encourage investment; but is that what has happened during crisis and recovery in Spain?

Key points

  • Key points:
  • On the one hand, there are rich communities that have gained ground on the average. On the other hand, there are more disadvantaged regions that have lost ground.
  • Regions with less income suffered greater job loss, yet this had no differential impact on the increase that they all experienced in productivity.
  • In the face of the next recession, the role that regional demand policies can play would make an interesting topic of study.

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