Unequal raw material exchange between and within countries: Galicia (NW Spain) as a core-periphery economy

Abstract

A global multi-regional input-output model with sub-national resolution for Galicia, north-west Spain, was used to study physical and value added trade balances between Galicia, the rest of Spain and the world. Within the framework of Ecologically Unequal Exchange theory, we argue that a region, such as Galicia, can play a twofold role as core and periphery in the global division of extractive activities. We show that Galicia is a sink, i.e. net importer of natural resources from middle- and low-income economies, and that the lower the income of the trade partner, the more raw material intensive the imports (measured as upstream kg per USD imported value added). However, this physical deficit is less accentuated than for the rest of Spain and Galicia's material footprint is significantly lower (~14.2 compared with ~24.5 t/capita). Moreover, Galicia is a source, i.e. net exporter of raw materials compared with more thriving European Union economies and, even for some key trade partners, such as Germany, UK and the rest of Spain, it is a net importer of value added.