## Spain: Selected Issues

_IMF Staff Country Reports, November 21, 2018_

## Source details

**Canonical URL:** [Spain: Selected Issues](https://www.imf.org/en/publications/cr/issues/2018/11/21/spain-selected-issues-46382)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/11/21/spain-selected-issues-46382/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/11/21/spain-selected-issues-46382/index.json)
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## Bibliographic details
- Published: November 21, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484385753.002

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### Summary of findings
- Recent studies of income convergence among Spanish regions suggest that the convergence has been slow since 1980 reflecting persistent regional disparities in total factor productivity.
- The empirical analysis—employing stochastic frontier models—finds that, among other factors, differences in regions’ skills mismatch and technology absorption capacity could be behind the disparities.
- A benchmarking exercise demonstrates significant potential growth benefits from policy measures that would bring regions closer to the frontier.
- Regional income disparities—driven by differences in total factor productivity (TFP) and unemployment—while not large compared with European peers, have been persistent in recent years.
- The economy’s overall productivity frontier moved inward overtime, but this trend has slowed down after the crisis.
- The inward shift of the production frontier could be one of the explanations for the negative TFP growth observed before the crisis.
- Active labor market policies at the regional level could also work toward addressing skills mismatch and education outcomes.

### Policy implications and recommendations
- Implement active labor market policies at the regional level to address skills mismatch and improve education outcomes.
- Design and implement policy measures to bring regions closer to the productivity frontier to capture the significant potential growth benefits identified by the benchmarking exercise.
- Target interventions that improve regions’ technology absorption capacity to reduce persistent TFP disparities.

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## Content in this bundle

- **Country Report**
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  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr18331.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/11/21/spain-selected-issues-46382_