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Poverty and economic inequality in peripheral regions of developed countries: the case of Galician municipalities (Spain)
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DOI：10.1080/12265934.2026.2675985.png)
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Abstract
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This paper aims to shed some light on the relationship between poverty and economic inequality, as well as to explain the current dynamics leading to the perpetuation of poverty and the rise of inequalities in peripheral regions of developed countries. Thus, the impact of economic inequality on poverty and the possible existence of regional dynamics of wealth concentration are explored. For that purpose, a quantitative analysis based on Robust Least Squares regression is conducted for Galician municipalities in Spain, using proxy variables for poverty, economic inequality and per capita income. In particular, three poverty levels are considered – severe, moderate, and the poverty line – proxied by the percentage of individuals with income per consumption unit below 5.000€, 7.500€, and 10.000€ per year, respectively. Moreover, the Gini index and the S80/S20 ratio are used as proxies for income inequality, while average net income per capita is used as a proxy for per capita income. The results suggest that the proportion of poor people is greater in places with higher income inequality. Moreover, once the GDP per capita surpasses a certain threshold, economic inequality increases as GDP per capita rises further. Therefore, persistent ‘poverty traps’ may happen in case these dynamics are not externally reverted.
Keywords:
Economic inequality
poverty traps
regional development
regional inequality
technological change
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