The role of fiscal transfers for regional economic convergence in Europe

Christiane Nickel (), Cristina Checherita-Westphal and Philipp Rother
Authors registered in the RePEc Author Service: Cristina Checherita Westphal

No 1029, Working Paper Series from European Central Bank

Abstract: This paper provides evidence on the role of net fiscal transfers to households and EU structural funds for per-capita output convergence across a large sample of European regions during the period 1995-2005. We find that net fiscal transfers, while achieving regional redistribution, seem to impede output growth and promote an "immiserising convergence": output growth rates in poor receiving regions decline by less than in rich paying regions. EU structural and cohesion funds spent during 1994-1999 had a positive, but slight, impact on future economic growth, mainly through the human development component. JEL Classification: E62, R11, R23

Keywords: convergence; fiscal policy; regional economic growth; regional migration (search for similar items in EconPapers)
Date: 2009-03
New Economics Papers: this item is included in nep-geo and nep-ure
Note: 166869
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20091029

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