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One of the common observations that arises when discussing the País Valencià (Region of Valencia, henceforth PV) is that it is a wealthy region. Nonetheless, the figures tell a different story; indeed, Valencians’ standard of living, measured by the gross domestic product per inhab-itant, is only 88 % of the Spanish average. Over the past 40 years, the distance from this average has grown, even though the gap has recently stopped increasing.The explanation does not have to do with the unemployment rate, which is only half a percentage point above Spain’s right now, even with a smaller portion of the population in the job market, because the employment rate is notably similar. But it is clearly related to the low relative job productivity level. The reasons for this cannot be reduced to a development model based on labour-intensive sectors which do not lend themselves easily to technological innovation. It is true that in addition to an intense tertiarization process in which retail and the hospitality industry play an important role, Valencia’s manufacturing industry has traditionally been geared towards the production of consumer goods, which has seldom required qualified labour or been prone to major technological innovations. Nonetheless, we are witnessing a gradual trend towards the loss of importance of the traditional sectors, such as the footwear, textile and furniture industries, and an expansion of the automotive, chemical and food industries. Furthermore, in areas where the toy industry used to be predominant, there has been a spontaneous restructuring towards plastics meant for other uses in the wake of intense competition from Asian imports.

Reig, E. (2023). «The Valencian economy: bright and dark spots». Catalan Social Sciences Review 13 (Second era): 103-105. https://revistes.iec.cat/index.php/CSSr/article/view/150887