ABSTRACT

This chapter presents new and sound data to analyse regional income inequality in Spain from 1860 to 2010, and discusses the sources of these regional income differences. Among the academic controversies regarding economic development, the issue of regional inequality is prominently featured. The chapter shows the distribution of regional income in Spain is influenced by the action of economic forces more than by first nature causes. To analyse the long-term evolution and determinants of regional inequality in Spain, the chapter shows that the regional GDP figures for the years 1860, 1900, 1910, 1920 and 1930, while the data were collected from different well-known sources for the remaining years. According to neoclassical trade theory, the initial regional income per capita disparities are caused by spatial differences in the distribution of endowments and technology. The 1960s and 1970s witnessed a new period of rapid decrease in regional inequalities.