This study examines how political and fiscal decentralization are associated with subjective well-being across 140 European NUTS-2 regions using 2022 data. The results show that political decentralization is more strongly associated with life satisfaction in lower-governance regions in pooled models, suggesting a compensatory pattern. However, this relationship disappears once country fixed effects are introduced, indicating that the pooled association is driven primarily by cross-country institutional differences rather than robust within-country regional variation. Fiscal decentralization results are more mixed: broad expenditure, revenue, and transfer indicators are sensitive to specification, while regional discretion over personal income tax emerges as a more substantive form of fiscal autonomy within countries. Overall, the findings suggest that decentralization is not uniformly associated with higher well-being; its relationship with life satisfaction depends on the type of authority decentralized, governance quality, and broader national institutional context.
We analyze the determinants of the internal and foreign migrants’ decision regarding their employment status and examine the importance of second-language proficiency in bilingual economies. When arriving at a bilingual territory, migrants must decide if it is worth to learn the second official language. If one of the languages predominate in economic activity, there are less incentives for migrants to make the effort of learning the second language. However, if a local language contributes to build or strengthen a regional identity, learning it could help immigrants’ immersion in the receiving region. We use the Spanish Census in 2001, which exceptionally asked all participants about their knowledge of the co-official language in the bilingual regions. Our results show that second-language proficiency reduces the probability of being unemployed and stimulates self-employment. e impact becomes stronger among foreign migrants without Spanish as a first language and migrants arriving after primary school and living in non-urban areas.
The paper addresses two research questions: first, what factors explain the continuity of the Cohesion Policy (CP); and second, to what extent such policy has contributed to reducing territorial disparities across the EU and to achieve other objectives. e article advances some hypotheses, and the analysis highlights the core pillars of the CP: its ‘philosophy’, evolving objectives, financial resources, and institutional architecture. It further evaluates outcomes in some key areas: convergence trends, infrastructure investment, human capital formation, and support for SMEs. The findings suggest that while CP has contributed to reducing territorial disparities and other positive achievements linked to the European economic and welfare growth, its effectiveness varies across regions, and some policy domains face persistent challenges such as effectiveness, bureaucratization, and regional/sectoral policy conflicts which give support to important criticisms.
El acceso a la vivienda constituye un problema creciente a escala global, con especial incidencia en jóvenes y colectivos vulnerables. El incremento sostenido de los precios de la vivienda, junto con el estancamiento de las rentas, ha generado una carga financiera excesiva para los hogares de menores rentas. La nueva Ley 12/2023 española por el derecho a la vivienda incorpora el concepto de asequibilidad, definido como aquel nivel de gasto en vivienda que no supera el 30 % de la renta de los hogares. El trabajo evidencia que dicha definición presenta limitaciones sustanciales. Se revisa la literatura sobre la asequibilidad, sus indicadores y métodos de medición, y se propone una redefinición del término para una política de vivienda más eficaz. La propuesta integra equidad vertical, rentas residuales mínimas y diferencias territoriales.
This paper examines the entry of new financial actors into the Castellón ceramic cluster between 2010 and 2024. By exploring the relationship between changing ownership structures and corporate growth strategies, it analyses three types of company acquisition with varying effects on the region. Drawing on a selection of news sources and corporate information, this study argues that financial actors do not always contribute to the broader aim of regional development, as they tend to focus on short-term speculative goals, while overlooking other social aspects that enable local companies to offer innovative and distinctive products and services linked to the territory. These concerns are particularly evident in the case of investment funds (IF) that manage a portfolio of investments in various businesses and engage primarily in financial strategies. These new owners have accelerated two different processes in the territory: business concentration and acquisition. However, there is no clear long-term benefit for the future of the acquired companies. e short-term approach driven by the temporary pressures of investment funds reduces incentives to invest in specific assets, and discourages investment in high-risk projects.
Cloud computing is widely recognised as a key technology that enables digitalisation, fuelling the digital economy growth. Using World Bank Governance Indicators, in this paper we examine how country's quality of governance (or good governance) impacts the use of cloud computing in the enterprises in the EU, hence affects digitalisation of the EU. In an empirical examination of 27 EU countries over a period from 2014 to 2021, it was found that good governance positively affects cloud computing adoption in the EU enterprises. In support of the institutional theory, we show that the improving country's governance quality is an important step in accelerating cloud computing adoption by the EU enterprises, the finding providing an important input to the EU government in their execution of the Industrial Strategy 2030, in which digitalisation and cloud computing adoption play an important role. Businesses operating in the EU countries with higher quality of governance are more likely to implement cloud computing in their operations, a cost and performance benefiting technology, a valuable insight to the EU enterprises, which gain direct benefits from increased cloud computing adoption in their businesses.
This paper examines trade flows between Spanish regions to assess whether the location of company headquarters affects regional trade flows. To achieve this, various gravity models are used to assess whether economic and geographical factors influence the intensity of trade flows. This study utilises European regional data, provided by the EUREGIO database, focusing specifically on Spanish regions. The results show that factors such as inertia, territorial contiguity, economic attraction between regions, and the location of company headquarters play a significant role in determining the intensity of GVA trade flows between Spanish regions.
This paper aims to provide a comprehensive description of the evolution of public investment by the Autonomous Communities in Spain from 1984 to 2021, to identify patterns in investment policies and explain their underlying causes. Additionally, the paper evaluates the impact of savings, transfers, and deficits on public investment. The findings reveal distinct patterns in the level and dynamics of these variables across regions. Priority was given to essential welfare expenditures during the Great Recession, while the post-recession recovery displayed varied regional behaviors. The positive impact of European and national funds, such as the Interterritorial Compensation Fund, effectively revitalized investment and savings, which emerged as a key differentiating factor in chartered communities.
This paper investigates the relationship between informality and job quality in Ecuador, emphasizing the role of education as a mediating factor. Utilizing data from the National Survey of Employment, Unemployment, and Underemployment from 2014 to 2019, the study employs an Employment Quality Index to assess job quality. Through a detailed empirical strategy incorporating pooled ordinary least squares regressions, panel data analyses, and spatial models, the research unveils a negative impact of informality in employment quality. However, the findings indicate that education does not significantly influence this relationship at the regional level. These results highlight the necessity for targeted policy interventions that address the structural issues in the labor market.
This study investigates the spatial patterns of crime in Ecuador and their driving factors, paying special attention to the judicial system's impact. Drawing on data from 218 cantons between 2015 and 2021, we applied exploratory spatial data analysis and spatial econometric models for cross section data and panel data. Our analysis revealed discernible clusters of both high and low crime rates, as well as isolated areas of crime (islands of crime) and safety (islands of non-crime). The findings offer a detailed overview of the crime situation in Ecuador and emphasize the significance of geographic elements in formulating effective crime prevention measures. The analysis also identifies the shift in crime dynamics over time, indicating that cantons typically experiencing low crime rates can evolve into higher crime areas, hinting at a contagion effect within spatial clusters. The study further underscores the critical influence of the judicial system on crime prevalence, where systemic inefficiencies such as case backlogs and a high proportion of unsentenced inmates are associated with rising crime. For policymakers, these insights underscore the necessity of tailoring interventions to the specific contexts and dynamics of each region, considering both the local conditions and the broader surrounding crime environment.
The ability of local territories to create and attract human capital is key in generating progress at the local level. However, skilled workers not only tend to stem from certain regions, but to be attracted to them. This study analyzes interregional migratory movements in Chile, identifying differentials in local economic development as a factor that promotes selective migration of workers. The results indicate that regions with high levels of relative development attract more qualified migrants and expel the less qualified, thus reinforcing the initial concentration of human capital.
The article represents the first contribution in which the economic impact of a group of nine Latin American universities is estimated, following a demand-based approach and a homogeneous methodology. The analyzed universities have different profiles depending on their ownership, size, age, or geographic location. Using the input-output methodology, the impacts derived from the expenditures and investments made by both the universities and their related agents are estimated. The results show significant impacts (up to 4% of the regional GDP, depending on the case), which extend across the entire national territory and all economic sectors. The study demonstrates that the economic and social impact is highly relevant, providing a substantial return, overall in universities with a high level of R+D+I activities.
En este texto se realiza una reseña de la Thematic Encyclopedia of Regional Science (Edward Elgar, 2025). La enciclopedia organiza más de 300 entradas en siete dominios temáticos, ofreciendo un marco estructurado que integra aportaciones de la geografía económica, la economía urbana y regional, la sociología, la planificación, el análisis espacial y los estudios ambientales y de transporte. Su aparición refleja tanto el resurgir del formato enciclopédico como la creciente complejidad del campo de la ciencia regional, impulsada por la expansión de datos georreferenciados, el desarrollo metodológico y la centralidad del reto climático en los debates científicos y políticos. La obra evidencia la “era dorada” que vive la ciencia regional, convertida ya en parte del mainstream de las ciencias sociales. Sin embargo, se identifica una brecha creciente entre el rápido avance empírico-metodológico y el limitado progreso teórico, subrayando la necesidad de nuevas síntesis deductivas que consoliden y estructuren el conocimiento generado por la proliferación de estudios aplicados.
El artículo presenta una propuesta metodológica para la elaboración de un modelo multirregional de predicción y simulación económica a medio y largo plazo para las 19 comunidades y ciudades autónomas de España. En un contexto de creciente descentralización y necesidad de información estadística homogénea, se destaca la carencia de datos regionales consistentes desde la óptica de la demanda agregada. Para abordar esta limitación, se construye una base de datos regional anual (1995–2023) con 40 variables por región, incluyendo componentes de demanda interna y externa, tanto en términos nominales como de volumen, y variables del mercado laboral. El modelo adopta un enfoque mixto “bottom-up” y “top-down”, implementado en EViews, y se basa en modelos econométricos estructurales con corrección de error. Cada región cuenta con un modelo independiente que se ajusta posteriormente a un marco nacional. Se incorporan deflactores específicos, interacciones interregionales y variables exógenas nacionales e internacionales. El modelo permite realizar simulaciones y escenarios alternativos, siendo útil para evaluar políticas como la ejecución de fondos europeos o impactos de cambios arancelarios. Actualmente, genera predicciones hasta 2050, ofreciendo una herramienta robusta para la planificación económica regional.
Small and medium-sized enterprises (SMEs) operating in traditional manufacturing clusters face acute challenges when sudden systemic shocks disrupt established markets and production routines. This article analyses how SMEs embedded in a mature industrial cluster responded to the COVID-19 crisis, focusing on the Valencian textile district in Spain, a Southern European manufacturing ecosystem that remains under-represented in resilience research. Using a mixed-methods design combining survey data from 80 SMEs with complementary managerial interviews, the study examines how dynamic capabilities, strategic innovation behaviours, and organisational characteristics relate to firms’ ability to maintain or increase turnover during the crisis. The results show that product development strategies are most strongly associated with resilience, substantially increasing the likelihood of maintaining or growing turnover. Diversification into technical textiles also displays a positive, though more moderate, relationship with resilience, while conventional R&D indicators exhibit limited short-term explanatory power in this mature manufacturing context. Firm age shows a negative association with resilience, suggesting greater adaptability among younger firms. Gender composition also matters: firms with a higher share of female employees, and to a lesser extent women in management positions, tend to display greater adaptive capacity. Qualitative insights from managerial interviews help explain how strategic agility and organisational diversity enabled rapid adaptation under conditions of extreme uncertainty. Overall, the findings indicate that during abrupt, demand-driven systemic shocks, agile and marketoriented innovation strategies play a more decisive role in short-term SME resilience than formal R&D investment in traditional industrial clusters. The study offers actionable implications for SME managers and regional policymakers seeking to strengthen cluster resilience through flexible product strategies, selective technical upgrading, and inclusive organisational structures.
Economic complexity literature highlights the role of productive capabilities and industrial sophistication as central drivers of long-term development, yet most empirical evidence remains concentrated in a limited set of countries. is paper extends the debate by examining Mexico, a middle-income economy deeply integrated into global markets and characterized by stark regional disparities. Using data from the 2004 and 2019 Economic Censuses, we assess changes in manufacturing specialization and complexity across Mexican regions. e results show that while all regions increased their specialization and diversification, only those able to transition into more complex manufacturing industries expanded their share of national output—patterns consistent with findings for China, Italy, and Brazil. These findings underscore the importance of the quality of diversification, not just its extent, as a determinant of regional economic performance. More broadly, the Mexican case illustrates how integration into global value chains does not automatically guarantee convergence: sustained development depends on the accumulation of capabilities and upgrading into sophisticated activities. The study thus contributes to international debates on structural transformation, regional inequality, and the conditions under which emerging economies can leverage industrial complexity for inclusive growth.
Advances in interregional databases, driven by globalisation of the economy, enable a more in-depth analysis of trade flows. It should be borne in mind that a better understanding of interregional trade flows would contribute to more appropriate economic policy decisions. One of the objectives of this paper is to propose and apply a method to obtain the interregional flows that allows each region to be characterised based on its dependence, and the orientation and intensity of the flows. The ultimate objective is to test whether the location of the headquarters of companies affects the calculation of regional macromagnitudes. To this end, using different gravity models, we assess whether geographical factors influence the intensity of trade flows. This study uses European regional data, provided by the EUREGIO database, and focuses on Spanish regions. Our results show that factors such as inertia, the border effect and the headquarters effect of companies determine trade flows between the regions of Spain.
This paper analyzes how territorial conditions influence the productivity of manufacturing and service firms in Ecuador. We employ multilevel models to estimate the effects of the urban population share and regional sectoral diversity on total factor productivity and labor productivity, also incorporating the moderating role of innovation. The results show that approximately 5% of the differences in productivity are attributable to geographic location. The share of urban population has a positive effect in both sectors, while sectoral diversity benefits manufacturing exclusively. Likewise, it is observed that innovative manufacturing firms enhance the benefits of both agglomeration and diversity, while service innovative firms obtain additional advantages from diversity.
Since the mid-20th century, a significant number of countries have transferred powers to subnational governments, which has had a considerable impact on the economic and institutional landscape. In this context, local governments have become essential in the implementation of policies that directly affect the firm’s demography. Consequently, we analyze the impact of regional authority on a set of outcomes previously unexplored in the literature: the level of entrepreneurship and firm survival. Results suggest that greater autonomy can stimulate regional business dynamics, increasing enterprise creation but lowering survival rates. Moreover, these effects appear to be conditioned by institutional quality, where a stronger institutional framework enhances the effect of regional authority on business entry and mitigates its impact on survival.
The objective of this paper is to examine the convergence of economic activity between the various NUTS 3 regions of the Iberian Peninsula over the period 2000-2019. An analysis of the GDP (PPS) per capita of Spanish and Portuguese provinces was conducted with the help of different usual statistical and econometric methods of σ, β and γ. This was done to confirm the existence or non-existence of economic convergence in the period under analysis. The results revealed the existence of economic convergence between the Portuguese and Spanish provinces. In addition, they showed that more than half of the territory analysed was characterised by a scenario of poverty.
