02205cas a2200241 a 4500 AALejournalIMF018890 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484385753 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Spain : Selected Issues. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (18 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper on Spain focuses on differences in regional productivity. 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. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2018/331 Full text available on IMF http://elibrary.imf.org/view/journals/002/2018/331/002.2018.issue-331-en.xml IMF e-Library