Depressing dependence? Transfers and economic growth in the German States, 1975-2005
Thushyanthan Baskaran (),
Lars Feld () and
Sarah Necker ()
No 17/01, Freiburg Discussion Papers on Constitutional Economics from Walter Eucken Institut e.V.
Most countries pay substantial intergovernmental transfers to poor regions with the aim of achieving regional convergence. Consequently, transfers should have a positive effect on economic growth. However, it is equally possible that transfers perpetuate under-development. This paper studies empirically the effect of intergovernmental transfers on economic growth with a panel of West German states over the period 1975-2005. The findings suggest that transfers do not foster economic growth, presumably because the recipients use them to subsidize declining industries.
Keywords: intergovernmental transfers; economic growth; fiscal federalism (search for similar items in EconPapers)
JEL-codes: H70 H73 H77 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
Journal Article: Depressing dependence? Transfers and economic growth in the German states, 1975–2005 (2017)
Working Paper: Depressing Dependence? Transfers and Economic Growth in the German States, 1975-2005 (2016)
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:zbw:aluord:1701
Access Statistics for this paper
More papers in Freiburg Discussion Papers on Constitutional Economics from Walter Eucken Institut e.V. Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().