Spain's Economic Growth Fueled by Job Creation, but Productivity Stagnates
The economic growth in Spain from 1989 to 2010 was driven by increased income, job creation, and capital accumulation. However, productivity did not improve much, leading to a loss of competitiveness. The study analyzed data from different regions in Spain and found that despite heavy investments in capital, productivity remained stagnant. This means that the growth in Spain was mainly due to adding more capital rather than making existing capital more efficient.