An Exploration into the Effects of Fiscal Variables on Regional Growth

Diego Martínez

No E2003/46, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: This paper explores the effects of several fiscal variables on regional economic growth in Spain over period 1965-1997. Panel estimates are provided for this sample. The results show that public consumption affects negatively growth, public investment exerts a positive (but non significant) effect on growth rate and public deficit reduces private investment and hence economic growth. The effects of taxes and social benefits seem not to be beneficial for regional growth. Alternative estimates to deal with specification problems are considered.

Keywords: Economic growth; fiscal policy; regional economics. (search for similar items in EconPapers)
JEL-codes: H54 R40 R53 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2003
New Economics Papers: this item is included in nep-geo and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2003_46

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