Interregional redistribution, growth and convergence
Damiaan Persyn and
No 547232, Working Papers of VIVES - Research Centre for Regional Economics from KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics
Even in the absence of an explicit regional policy, countries redistribute substantial amounts of wealth between regions through taxation and social security. Using data on 140 European regions between 1995 and 2007, this paper nds that interregional income redistribution leads to lower regional economic growth and to slower within-country convergence. This may explain the observed lack of within-country convergence in the EU, in contrast to relatively fast between-country convergence where such redistributive schemes do not exist. The results suggest that investment in transport infrastructure or human capital offer better means to foster both regional growth and convergence.
Keywords: solidarity; regions; economic growth; redistribution; inequality; convergence (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Published in VIVES discussion paper, 2009/4 , pages 1-37
Downloads: (external link)
Working Paper: Interregional redistribution, growth and convergence (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ete:vivwps:547232
Access Statistics for this paper
More papers in Working Papers of VIVES - Research Centre for Regional Economics from KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics
Bibliographic data for series maintained by library EBIB ().