Patterns of Regional Income Distribution in Uruguay (1872–2012): A Story of Agglomeration, Natural Resources and Public Policies

The aim of this chapter is to analyse the long-term evolution of the Uruguayan economy from a different angle, adopting a regional perspective. In so doing, we first present estimates of regional GDP for the 19 provinces (departamentos) that make up Uruguay nowadays. Our estimates correspond to 16 benchmark years throughout roughly a century and a half, from 1872 to 2012. This information allows us to evaluate the main patterns of regional income inequality from the globalization of the Atlantic economy in the late nineteenth century until today. Further, the regional GDP database offers the possibility to examine the following: the magnitude of the relevance of Montevideo and its evolution over time; the impact of different trade regimes on the levels of regional inequality; the effect of public policies during the state-led industrialization on the spatial distribution of economic activity; or the evolution of the economies of the borders with Argentina and Brazil.