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Productivity in the Spanish regions during the recent economic cycles

Simon Sosvilla-Rivero ()

ERSA conference papers from European Regional Science Association

Abstract: The Spanish regions are facing a severe recession caused by the international financial crisis that has overlapped with the correction that had been recorded in the property market, which has led to a sharp drop in economic activity and a rapid destruction process employment. In these circumstances it is a priority to begin a new growth path based on a more productive and sustainable pattern, which enhances competitive sectors and contribute to the creation and consolidation of employment. This paper has attempted to shed light on what branches of production can be the basis for a new production model of the Spanish economy to overcome the weaknesses in the present, making special emphasis in services To this end, the behavior of productivity during expansions will be analyzed for twenty production branches by applying the methodology proposed by Leamer (2007), based on the decomposition of contributions to the growth of the productivity of each of these branches in 'normal' and 'outstanding'. The results will identify production branches that have contributed to the weakening of productivity during recessions as well as those that have created an important stimulus to productivity during expansions.

Date: 2011-09
New Economics Papers: this item is included in nep-eff, nep-fdg, nep-geo and nep-mac
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