SECTORIAL DYNAMICS AND THE CONVERGENCE OF REGIONS OF INTERMEDIATE AND ADVANCED DEVELOPMENT IN THE EUROPEAN UNION

This article uses the Valencian Community (Spain) as a case study to analyse, in terms of GDP per person, the convergence of regions of intermediate development with the most advanced ones within the European Union. The obstacles hindering this convergence and the paths the convergence takes are shown not only in the context of a growing interdependence in the world economy but also of European integration. The study clearly demonstrates how convergence only comes about as a result of the creation of employment, while the gap in productivity is getting ever wider. The explanation fundamentally stems from the lack of convergence of the production structure with the more advanced activities which predominate in the most developed regions. With the arrival of the economic crisis from 2007, a reversal has occurred of the process of convergence that had taken place during the previous phase of expansion.