Geographic and Demographic Determinants of Regional Growth and Convergence: a Network Approach

Abstract

This paper examines the evolution of spatial similarities and disparities in the Iberian Peninsula, using data on GDP per capita of 81 NUTS 3 Portuguese and Spanish regions over the period 1995-2012. The main geographic and demographic determinants of growth are taken into account, dividing the regions in several groups, namely “(common)-border”, “interior (without border)”, “coastal”, “metropolitan” and “ultraperipheral”. After a brief analysis of the relative performance of regions and the quantification of sigma and beta-convergence trends, a network approach is applied, based on a metric space build from the correlation coefficients between the log-differences of regional GDP per capita. This metric space and the corresponding topological setting are use to develop networks of Iberian regions, uncovering the main geographic and demographic determinants of regional growth and convergence.