According to the neoclassical model, economies converge in a growth process characterised by a smooth path towards a steady-state. However our results confirm that there are significant differences among the steady- states of Spanish regions over the period 1955-95. In this paper, we reject the common linear model hypothesis in favour of a multiple regime alternative, in which different economies obey different models when grouped according to their initial income per head and industrial mix. The methodology focuses on both the cross-sectional panel data regressions and modelling the growth process as a time homogeneous Markov chain.

Keywords: economic growth, persistence, clubs, ergodic distributions. JEL classification: C21, C23, O18, R11.