Competitiveness and Cohesion in the Spanish Provinces: A Territorial Approach

Abstract

This chapter draws on economic models to explore the relationships between economic competitiveness and territorial cohesion in the Spanish regions for the period 1981–1998. It appears that redistributive policies in Spain have been effective in promoting territorial cohesion for a large number of provinces. Moreover, the traditional division between dynamic and backward provinces is being overcome and does not reflect any more the economic-territorial map of Spain. However, cohesion policies have not succeeded in increasing productivity, particularly in the relatively impoverished southern regions. The authors review a host of socio-economic variables (employment, urbanization, local and EU subsidies, gross value added, disposable income, ageing, population density, and productivity) related to competitiveness and cohesion and conclude with some broad policy recommendations.