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Do interregional transfers improve the economic performance of poor regions? The case of Spain

Teresa Garcia-Mila and Therese J. McGuire

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: The 17 regional governments of Spain receive grants from both the central government and the European Union. The grants are generally redistributive and are intended to stimulate economic activity in the poorer regions. We evaluate the effectiveness of the grants by comparing the economic performance of the regions before and after the implementation of the grant programs using a differences--in-- differences approach. We find that these policies have not been effective at stimulating private investment or improving the overall economies of the poorer regions.

Keywords: Regional; grants; and; economic; development (search for similar items in EconPapers)
JEL-codes: H7 R5 (search for similar items in EconPapers)
Date: 1996-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain (2001) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:207

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