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Evaluation of the effects of European regional policy in the diminution of regional disparities

Maria-Carmen Guisan (), M. Teresa Cancelo () and M. Rosario Diaz-Vazquez ()

Economic Development from University of Santiago de Compostela. Faculty of Economics and Business. Econometrics.

Abstract: One of the EU objectives is economic and social cohesion, which is a necessary step for the success of European integration. A key factor for cohesion is the implementation of the adequate regional policy in order to reduce regional disparities. This objective can be reached in two different ways. The first one is through levelling transferences from rich to poor regions. The second one would tend to locate peripheral regions in conditions of developing production activities so as to reach an economic development similar to that of the richest ones. This second way, which consist of "equalizing opportunities", is the one we prefer. In this paper, we analyse at which extent European regional policy has allowed to reach the conditions needed in order to stimulate endogenous development in the less developed regions. In this connection, we reckon that the main factors in order to reach this development are geared in stimulating both industrial investment and research and education. We analyse whether or not this elements have been adequately addressed within European policy.

New Economics Papers: this item is included in nep-eec
Date: 1998
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