Spatial clustering and a new economic geography approach also contribute to the historical analysis provided, which points to the role played by spatial externalities and their growing relevance over time. To identify the presence of spatial dependence is crucial, not only for getting a better understanding of distribution dynamics, but also for economic policy purposes.
What are the potential causes behind the disparities in regional per capita income and productivity? The authors answer this by comparing results with evidence available for othercountries, chiefly France, Italy and Portugal, but is of global relevance.
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