Paper #207

Títol:

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

Autors:

Teresa Garcia-Milà i Therese J. McGuire

Data:

Desembre 1996

Resum:

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.

Paraules clau:

Regional grants and economic development

Codis JEL:

H7, R5

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

International Tax and Public Finance, 8 (3), 2001, pp. 281-295

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